标题: FCF: what is the practical use? Don't you always go for FCFF or FCFE? [打印本页] 作者: sabaruch 时间: 2011-7-11 19:40 标题: FCF: what is the practical use? Don't you always go for FCFF or FCFE?
I've come across the definition of FCF a few times as below:
free cash flow:
Net income
+ Net interest after tax
= Unlevered net income
作者: SeanWest 时间: 2011-7-11 19:40
if i remmber right, is not this from the credit analysis material?
if so, it is just some method one of those credit analysis firms is using...whether we like it or not, they want us to know it...作者: Houjichasan 时间: 2011-7-11 19:40
I believe this is from the corporate finance section, calculating projected free cash flow for DCF. Fulloquestions, you are right that it's close to FCFF. In fact, it IS FCFF. Ultimately, what the formula is doing is taking your NI, adding back noncash charges, interest after tax, subtracting NWC changes and CAPEX.
That should answer your question on when to use the formula.
