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9 Cards in this Set
- Front
- Back
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firm value
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fi rm value = FCFF discounted at the WACC
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FCFF
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FCFF = NI + NCC + [ I ntx (1 -tax rate)] - FCInv - WCInv
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FCInv
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FCInv = capital expenditures = ending gross PP&E — beginning gross PP&E
or FCInv = ending net PP&E — beginning net PP&E + depreciation |
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Calculating FCFF from EBIT
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FCFF = [ EBIT x ( 1 - tax rate) ] + Dep - FCInv - WCInv
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Calculating FCFF from EBITDA
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FCFF = [ EBIT DAx ( 1- tax rate) J + ( Dep x tax rate) — FCInv — WCInv
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Calculating FCFF from CFO
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FCFF = CF0 + [ lntx(l —tax rate) J — FCInv
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Calculating FCFE from FCFF
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FCFE = FCFF— [ 1 ntX (1—tax rate)J + net borrowing
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Calculating FCFE from net income
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FCFE = NI + NCC — FCInv — WCInv + net borrowing
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Calculating FCFE from CFO
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FCFE = CFO — FCInv + net borrowing
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