EBITDA is generally seen as your operating (cash) position, although you now need to add aasb16 leases now to get a truer operating performance picture. But its a pretty good proxy for operating cashflow D&A is non cash and also tax is derived from Tax D&A not accounting D&A
I normally value a company ex debt and cash, so removes interest expense. I think someone else said before debt is just a funding mechanism which usually its cheaper than equity. itrs easier to value a DCF on a unlevered basis IMO
EBITDA less aasb16 leases less Tax less net working capital less capex = Free cash flow available to shareholders
Then add a terminal value to all that if you want to get technical All in all I get well north of $1.50, but is obviously very sensitive to inputs
JHC Price at posting:
$1.19 Sentiment: Buy Disclosure: Held
