Скачать или смотреть EBTIDA to Free Cash Flow Formula

In this video we are going to be talking about converting EBITDA and EBIT to free cash flow to the firm and free cash flow to equity. But first, why would we do that?

Understanding how businesses generate cash flow should be a top priority for any aspiring financial professional or investor. And EBITDA and EBIT are constantly referenced in valuation exercises.

EBITDA is one of the most commonly used metrics to arrive at valuation, especially in the context of private equity transactions. And it is frequently cited as a proxy for cash flow, which is dangerous if you don’t understand what it means.

We’re going to be using an Excel template, which has a three-statement model on the left-hand side and calculations for free cash flow on the right-hand side, to better understand the relationship between these metrics. I think these formulas are too frequently provided without explanations, so were going to fix that.

That said, if all you’re looking for is the formulas, you can download the template at this link:
https://www.asimplemodel.com/insights...

Learn to Read Financial Statements and Build Financial Models:
https://www.asimplemodel.com/financia...