Bit confused regarding the tax rate to use to generate UFCF. Do you rather take the absolute cash taxes from the cash flow statement or the implied tax rate from the income statement and apply the implied tax rate to the EBIT?
Thanks
Bit confused regarding the tax rate to use to generate UFCF. Do you rather take the absolute cash taxes from the cash flow statement or the implied tax rate from the income statement and apply the implied tax rate to the EBIT?
Thanks
Hi,
Use implied tax rate to the EBIT
UFCF=EBIT*(1-t) + D&A -CAPEX- NWC
forget CFL statements taxes
R