There are two types of free cash flow models that may be used for the valuation of stocks. The first is free cash flow to the firm, and the second is free cash flow to equity. The difference between ...
FCFE shows a company's money left after paying bills, essential for assessing financial health. To calculate FCFE: net income + depreciation - capex - working capital + net debt. Positive FCFE ...
While earnings have long been the yardstick for determining a company’s profitability, they can also be misleading. After all, the bankruptcies of Enron and WorldCom in the early 2000s demonstrated ...