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📈 DCF
Medium
What's the formula for Levered Free Cash Flow (LFCF) starting from EBITDA?
Answer
LFCF = (EBITDA − D&A − Interest Expense) × (1 − Tax Rate) + D&A − CapEx − Δ Working Capital + Net Borrowings. Equivalent path starting from NI: LFCF = NI + D&A − CapEx − Δ NWC + Net Borrowings.
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LFCFformula