Free Cash Flow Valuation
Free CFA Level II lesson in Equity Valuation. 12 min read, ~1,812 words.
FCFF = NI + Dep + Int(1-t) - CapEx - delta WC, interest add-back is AFTER-TAX. FCFE = NI + Dep - CapEx - delta WC + Net Borrowing. FCFF is discounted at WACC (gets enterprise value); FCFE is discounted at cost of equity (gets equity directly). Use FCFF when...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- free cash flow valuation
Browse all free CFA Level II lessons or jump into free CFA Level II practice questions.