How to Calculate Free Cash Flows of a Company

Subscribe to our channel for regular tips on CFA, FRM, and Investment Banking.

Follow us on:

[ramnikjain]

Best educational video I have ever seen. Well done. Keep it up.

[jjholmes]

I forgot when the interviewer asked me whether interest will be deducted along with debt repayments from fcff to reach fcfe🤦‍♂🤦‍♂. Got the answer now. Thanks.

[MrVeer]

Many thanks for explaining and showing the calculations in Excel.

[sachinbhawnani]

Sir, I think there is always some difference between EBIT and operating profit . In EBIT we add the revenue from operation as well as other income but in operating profit we only include revenue from operations

[gyanvianeja]

I think while considering fcff, tax on interest expense should also be considered, like depreciation, it is also savings taxes.meaning thereby more cash in the hands of firm.

[Deepak-Raghav]

Sir, in last formula it should be added not deducted.

[sriharij]

Very good video, I learnt something. Why did you ignore other income in Cash flow ? Is it bcoz they are inorganic income !

[vinaykhanna]

Lever doesn't have any loan and there is hardly any Capital investment. They don't have any subsidiary also. There main expenditures are in ADVERTISING AND ROYALTY PAYMENT

[priteshpatel]

Nice explanation. can u make it in hindi ?

[RkChintamani]

Very good video, 👍 kindly do more video on balance sheet analysis and ratio

[avinashkarle]

sir please do vedio on forecast of future cash flow calculation

[akshaychallani]

Please clarify on why it's (1-33%)

[MsAzizrahman]

First of all, really appreciate your work, very helpful, however, at 22.21 the FCFE calculation is not correct. Proceeds from borrowings +1281 + Repayment of borrowings -949 + Other financial liabilities -204 + financial liabilities 0 = total should be +128. Could you please elaborate on the calculation of 1077?

[pavanshurpali]

Sir I didn't understand how you took 33% for 2009 Wala period can u please explain little bit more sir🙏🙏🙏

[zigggzaggg]

u said no debt so no interest while calculating taxes for EBIT, then why are you subtracting less amount paid to debtholders ?? can anyone explain

[adityamanral]

Should have clarified why we added interest with 1-tax, because the sign of interest payment was negative.

[soniabajaj]

Sir didn't understood the 33% interest part.

[shubhamnimje]

Didn't get why he has deducted interest as a percentage of tax rate. Can someone plz explain?

[BlueHoodieStudios]

FCFE should be lower than FCFF, something went wrong with the formula.

[kevalgala]

Why was interest not considered for calculating FCFF while it was considered for calculating FCFE?