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ash Flow

FCF to Equity Holders from SCF Only


ash + OA = L + RE + OE
cash + OA = L + RE + NI DIV
et CF = NI OA + L Div + OE
FO = NI OA(oper) + L(oper)
FI = - OA(capex)
FF= L(fin) + OE Div
FO (Direct)= (sales- AR)-(COGS+ inv- AP)-taxes
Valuation Residual Income
Multiples

DCF Abnormal ROE

Steady State Abnormal ROE

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