bingbingliang

The intuition for me was also to bear in mind the investor class that the cash flows were flowing to.
FCFF is before debt costs, but we must net off capital reinvestment in order to maintain future cash flows from our asset base
FCFE are cash flows to the equity class so that is a post leverage metric and we include net borrowings since we can do what we like (in theory) with money from new borrowings, i ncluding pay dividends.
CFO alternate method of course already includes the addition of the non cash charge and working capital investment, it has netted the taxes and interest so we must add back the after tax interest costs
EBITs a b4 interest and tax metric so we tax effect ebit add back the NCC for FCFF
EBITDA we have removed the tax shield of depreciation so we do the above and then add back tax affected depreciation charge as well
Voila. The intution started after working alot of problems though. The first 2-3 times through it was mentally taxing, and a real pain the a$$