Levered FCF yield is 10%. EBITDA 150, D&A 50, Interest 10, Capex 30, change in A/R +20, change in A/P -10, change in Inventory +5, Taxes 25, Debt 300, Cash 75. Find enterprise value.

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IBPrep · Accepted Answer

Levered FCF build: start with EBITDA 150, subtract D&A 50, Interest 10, and Taxes 25 to reach after-tax earnings, then add back the 50 of D&A, subtract Capex 30, and subtract the 35 working capital drain. That gives levered FCF = 50.

Levered FCF yield is 10%. EBITDA 150, D&A 50, Interest 10, Capex 30, change in A/R +20, change in A/P -10, change in Inventory +5, Taxes 25, Debt 300, Cash 75. Find enterprise value.

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Levered FCF yield is 10%.