Market value added = Market value of capital − Total capital
FCFE = NI – Net capital expenditure – WCInv + New debt financing
The major concepts are as follows:
- EPS plus per-share depreciation, amortization, and depletion (CF)
Limitation: Ignores changes in working capital and noncash revenue; not a free cash flow concept.
- Cash flow from operations (CFO)
Limitation: Not a free cash flow concept, so not directly linked to theory.
- Free cash flow to equity (FCFE)
Limitation: Often more variable and more frequently negative than other cash flow concepts.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Limitation: Ignores changes in working capital and noncash revenue; not a free cash flow concept. Relative to its use in P/EBITDA, EBITDA is mismatched with the numerator because it is a pre-interest concept.
匿名 さんが質問を投稿 2022年9月22日
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