Reading: Free Cash Flow Valuation
Free
Cash Flow
•Free
cash flow to the firm (FCF) – is the cash flow available to all suppliers of
capital.
FCF = OCF – NFAI – NCAI
where,
OCF = Operating cash flow
NFAI = Net fixed asset investment
NCAI = Net current asset investment
FCF = OCF – NFAI – NCAI
where,
OCF = Operating cash flow
NFAI = Net fixed asset investment
NCAI = Net current asset investment
Valuing
the Firm
Constant
Growth FCF Valuation Model
FCF
Example
Step
1 FCF Valuation
Step
2 FCF Valuation
Step
3 FCF Valuation
Step
4 FCF Valuation
Last modified: Tuesday, August 14, 2018, 8:38 AM