P/CF multiple

Hi everyone!

In Schweiser I have read the following: “Items affecting actual cash flow from operations are ignored when the EPS plus noncash charges estimate is used. For example, noncash revenue and net changes in working capital are ignored”.

I know that CFO excludes all noncash operations, but it doesn’t exclude changes in working capital. Is this an error in Schweiser book or misunderstanding from myself?

Adj. EPS ignores such items like changes in WC CFO includes them

Thanks, Oscar, I got it!