Levered Free Cash Flow (LFCF).

Levered free cash flow (LFCF) is a measure of a company's ability to generate cash flow that is available to its shareholders after accounting for its debt obligations. The levered free cash flow figure is calculated by taking a company's operating cash flow and subtracting out its capital expenditures and interest payments. This figure represents the amount of cash flow that is available to shareholders after the company has met its debt obligations.

LFCF is a valuable metric for investors to consider when evaluating a company, as it provides insight into a company's ability to generate cash flow and pay its debts. A company with a high LFCF is generally viewed as being in a stronger financial position than a company with a low LFCF.

There are a few things to keep in mind when considering LFCF. First, LFCF is a forward-looking metric, meaning that it is based on estimates of future cash flows. As such, it is subject to change if a company's financial situation changes. Second, LFCF does not account for all forms of debt, such as short-term debt and lease obligations. As such, it may not provide a complete picture of a company's financial strength.

How do you convert FCF to EBITDA?

The answer to this question depends on which valuation method you are using. If you are using the discounted cash flow (DCF) method, then you need to use the unlevered free cash flow (UFCF) figure. This can be converted to EBITDA by adding back interest expense, taxes, and depreciation & amortization expenses.

If you are using the multiples approach, then you need to use the EBITDA figure that is being used as the denominator in the valuation multiple (e.g. EV/EBITDA).

What is CapEx stand for? Capital expenditures, or CapEx, are funds used by a company to purchase, upgrade, or expand its physical assets, such as property, plants, or equipment. The purpose of CapEx is to ensure that the company has the necessary resources to keep its operations running smoothly and efficiently.

CapEx is often confused with operating expenses, or OpEx. Both are considered to be part of a company's overhead costs. However, while OpEx represents the day-to-day costs of running the business, CapEx represents the costs associated with long-term projects or investments.

For example, if a company needs to purchase new equipment to keep up with demand, this would be considered a capital expenditure. Similarly, if a company is planning to expand its operations by opening a new factory, this would also be considered a CapEx.

In contrast, operating expenses would include the costs of things like utilities, rent, and payroll. These are costs that are incurred on a regular basis and are necessary for the business to function.

CapEx is typically financed through a combination of debt and equity. Debt financing, such as loans or bonds, is often used for larger projects, such as constructing a new factory. Equity financing, such as issuing new shares of stock, is often used for smaller projects, such as upgrading equipment.

The decision of how to finance a project will depend on a number of factors, including the size of the project, the company's financial situation, and the expected return on investment.

In general, CapEx is considered to be a necessary evil by most businesses. While the upfront costs can be significant, the long-term benefits usually outweigh the short-term costs.

There are a few ways to measure CapEx. The most common method is to take the difference between the cost of the assets at the beginning of the year and the cost at the end of the year. What is another name for cash flow statement? The cash flow statement is also referred to as the statement of cash flows. Is EBIT the same as cash flow? No, EBIT is not the same as cash flow. EBIT is earnings before interest and taxes, while cash flow is the net amount of cash and cash-equivalents flowing in and out of a company.

Is CFO same as EBITDA? No, CFO is not the same as EBITDA.

EBITDA is a measure of a company's operating performance, calculated as earnings before interest, taxes, depreciation, and amortization. CFO, on the other hand, is a measure of a company's cash flow from operations.

While both measures can be useful in assessing a company's financial health, they are not interchangeable. CFO includes not only EBITDA, but also other important factors such as changes in working capital and non-cash expenses.