Would you rather have a (10) decrease in CapEx, a (10) decrease in OpEx, or a +10 to Revenue in a DCF model? Which would affect the EV most, and why?

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IBPrep · Accepted Answer

You'd rather have a $10 decrease to CapEx because this decrease results in a 1:1 gain in your cash flow. Both OpEx and Revenue are going to be tax affected, meaning that you won't actually see $10 from either of them.

Would you rather have a (10) decrease in CapEx, a (10) decrease in OpEx, or a +10 to Revenue in a DCF model? Which would affect the EV most, and why?

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