I'm in fixed income and studying for CFA Level 2. I'm going over the free cash flow section which gives the equations for FCFF and FCFE. But nobody actually reports these. Virtually every company I analyze uses the CFO – CapEx cash flow proxy to cite free cash flow, and sell-side reports do the same. Why is this? It's easier than the real equations, but it's not that much easier. It probably only takes a couple minutes to factor in after-tax interest expense (for FCFF) and net borrowing into a spreadsheet.
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