ostgut_ton
New member
- Jun 18, 2026
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I am doing a DCF right now, and got stuck when calculating FCFF. im not sure how to account for change in working capital
so heres the numbers:
after tax EBIT = 1000
dep/amortization = 10
change in working capital = -20
capex = 50
what is the proper FCFF?
1000 + 10 - (-20) - 50 = 980
or
1000 + 10 - 20 - 50 = 940
thank you appreciate the help!
so heres the numbers:
after tax EBIT = 1000
dep/amortization = 10
change in working capital = -20
capex = 50
what is the proper FCFF?
1000 + 10 - (-20) - 50 = 980
or
1000 + 10 - 20 - 50 = 940
thank you appreciate the help!