Chap 7 Method to forecasting FCFs and firm valuation
𝐹𝐶𝐹 = 𝑁𝑂𝑃𝐴𝑇 + 𝑑𝑒𝑝 − [𝐶𝐴𝑃𝐸𝑋 + ∆𝑁𝑂𝑊𝐶]
Step (1) Calculate Operating Profitability Ratio (OP)
𝑂𝑃 =𝑁𝑂𝑃𝐴𝑇
𝑆𝐴𝐿𝐸𝑆