Where did you find your list of companies and their Free Cash Flow? There seems to be several ways to arrive at a companies FCF, however consistency of how you apply the FCF formulae matters most when comparing companies.
I find it very hard to calculate this using different methods & get the same result.
It's difficult to interpret whether or not to use absolute values from the income statements & cash flow statement & balance sheet in the formula's below
It would be good to be able to just grad the FCF from a website & to see how they calculated FCF.
Free Cash Flow FCF (Last Y) = Net Income (Last Y) + Amortization & Depreciation (Last Y) - Change in Working Capital (Last Y) - Capital Expenditures (Last Y)
Working Capital (Last Y) = Current Assets (Last Y) - Current Liabilities (Last Y)
Working Capital (2Ys Ago) = Current Assets (2Ys Ago) - Current Liabilities (2Ys Ago)
Change in Working Capital = (Last Y - 2Ys Ago)
Also
Change in Working Capital = [(TCA - Cash)-(TCL - Debt repay)](Last Y - 2Ys Ago) can also take into account Cash On Hand & Debt Repaid.
&
Free Cash Flow (Last Y ~ 2yr Ago) = EBIT x (1-Tax rate) + Depreciation & Amortization - Changes in Working Capital - Capital expenditure
I'm also interested in
Free Cash Flow to Equity FCFE (Last Y) = Net Income + Dep & Amo - Cap Exp - Change No Cash Wking Cap + Net Debt Issued
Free Cash Flows to the Firm (FCFF) = FCFE - Net Borrowing - Interest x (1-t)
Unlevered Free Cash Flow (UFCF)(Last Y) = EBITDA (Last Y) - Cap Ex (Last Y) - Change Wking Cap (Last Y) - Tax (Last Y)
Levered Free Cash Flow = (EBIT + Interest Expense) x (1 x Tax Rate) + Depreciation & Amort., Total + Other Amortization + Capital Expenditure + Sale (Purchase) of Intangible assets - Change in Net Working Capital + Pref. Dividends Paid + Total Debt Repaid + Total Debt Issued + Repurchase of Preferred + Issuance of Preferred Stock
MML Price at posting:
$1.42 Sentiment: None Disclosure: Not Held
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