Revolutionizing Financial Analysis: New Method Unveils True Cash Flow Values
The article discusses how to calculate important financial figures like Net Present Value and Internal Rate of Return. It presents pro forma financial statements and explains how to derive key cash flow metrics like Free Cash Flow and Cash Flow to Equity. The authors redefine working capital to include additional items not considered in traditional methods. An example is provided to illustrate the calculation process. The article also shows how to determine levered equity and firm value in the appendixes.