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14 Cards in this Set
- Front
- Back
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Derive FCFF from Net Income
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Firm is pre-levered
NI +NCC -WCInv +Int(1-t) -FCinv |
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Derive FCFF from CFO
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"FCFF is pre-levered"
CFO +Int(1-t) -FCinv |
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CFO
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NI +NCC -WCinv
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Derive FCFE from NI
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"FCFE is post leverage"
(NI + NCC -WCinv) -FCinv + Net Borrowing |
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Derive FCFE from CFO
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"FCFE is post leverage"
CFO -FCinv + Net Borrowing |
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FCFE
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FCFE = FCFF -Int(1-t) +Net Borrowing
after Interest to bondholders and after net borrowing |
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Derive FCFE from EBIT
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"FCFE is post leverage"
EBIT(1-t) -Int(1-t) +NCC -WCinv -FCinv +Net Borrowing |
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Derive FCFE from EBITDA
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"FCFE is post leverage"
EBITDA(1-t) -Int(1-t) +dep(t) -WCinv -FCinv + Net Borrowing |
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Derive FCFF from EBIT
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"FCFF is pre-levered"
EBIT(1-t) +NCC - WCInv -FCInv |
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Derive FCFF from EBITDA
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"The Firm is pre-levered, the interest stays in"
EBITDA(1-t) +Dep(t) -WCinv -FCinv |
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Remember about NI and CFO
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NI & CFO are already interest free, add it back if you're working with FCFF
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FCFE mnemonic
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"Equity is interest-free, subtract it out and ADD NB"
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FCFF mnemonic
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"Firm is pre-levered so interest stays in: From NI,CFO, must add back again"
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Working Capital
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R + I - P
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