Asked by TANIE ETIENNE on Jul 02, 2024
Briefly define "free cash flows" and describe the key features of the free cash flow approach to valuation.
Free Cash Flows
The amount of cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base.
Cash Flow Approach
A financial analysis method that focuses on the company's cash inflows and outflows, rather than its net income.
- Grasp the methodology and importance of free cash flow and abnormal earnings in valuation.
Learning Objectives
- Grasp the methodology and importance of free cash flow and abnormal earnings in valuation.
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