The Foundations of Free Cash Flows
This module will discuss how to create a projection of free cash flows to use as the foundation of our DCF valuation. First, you'll learn how free cash flow differs from what you see on the cash flow statement. Then we'll start laying down the free cash flow foundation. We'll see that there are important factors that will determine which way our foundation comes out — whether it's firm, wobbly, flexible, or brittle. These are called value drivers and each has an impact on our free cash flow projections. This course replicates the content from lesson 2 from Business Valuation. A Core NYIF Course.
CPE Credits: 1
Program Level | Intermediate |
Prerequisites | This course has no prerequisites. |
Advance Preparation | No advance preparation required. |
Recent Revision Date | December 22, 2014 |
Instructional Delivery Method | QAS Self Study |
Field of Study | Accounting |
Duration : 1 hour
- Cash flow vs. free cash flow
- Determining free cash flow
- Reconciling free cash flow with the consolidated statement of cash flow
- Value Drivers
- Case Study