FREE CASH FLOW
  Definition
  
Measure used in cash flow multiples, and in Discounted Cash Flow valuations, where expected future free cash flows are discounted to present day.

  Calculation rule
  
Free cash flow = NOPLAT (net operating profit - EBIT - less adjusted tax) - increase in working capital - capital expenditure.

  Reference
  
EBIT
Capital Expenditure
Changes in Working Capital

Any questions?support@infrontanalytics.comEurope: + 33 1 42 77 02 18 - USA: + 1 718 228 6126Close