Which method is better from these two: discounting the Equity cash flow or discounting the free cash Flow?
Which method is better from these two: discounting the Equity cash flow or discounting the free cash Flow?
Free cash flow to equity. This is a measure of how much cash can be paid to the equity shareholders of the company after all expenses, reinvestment and debt repayment. Calculated as: FCFE = Net Income – Net Capital Expenditure – Change in Net Working Capital + New Debt – Debt Repayment, Which is the best defends upon need of valuations
