What @Simrat said is right, But if you still want to calculate free cash to firm (FCF) in the correct way from Net Income, you can use the Formula that is :
FCF = NI (-) Non cash charges [Depreciation/ amortization] (-/+) Increase/Decrease in Working Capital (-) Capital Expenditure.
There are also other ways to calculate FCF from CFO and EBITDA. Again the DCF models are not very suitable for companies like RACL which have growing or more volatile cash flows.
| Subscribe To Our Free Newsletter |
