Ungeared cash flow: Difference between revisions
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imported>Doug Williamson (Add PBIT x (1- T)) |
imported>Doug Williamson (Add links.) |
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The recalculated cash flow from a firm or a project, assuming that it was all-equity financed. | The recalculated cash flow from a firm or a project, assuming that it was all-equity financed. | ||
(Regardless of the actual or proposed capital structure.) | |||
Profit before interest and tax x (1 - tax rate) | |||
For a steady state business, a quick estimate of it would be: | |||
Profit before interest and tax x (1 - corporate tax rate) | |||
( PBIT x (1 - T) ) | |||
== See also == | == See also == | ||
*[[Cash]] | |||
*[[Cash balance]] | |||
*[[Cash flow]] | |||
*[[Equity]] | |||
* [[Geared cash flow]] | * [[Geared cash flow]] | ||
* [[Gearing]] | * [[Gearing]] | ||
* [[Profit before interest and tax]] (PBIT) | |||
* [[Ungeared beta]] | |||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Latest revision as of 23:00, 18 July 2022
The recalculated cash flow from a firm or a project, assuming that it was all-equity financed.
(Regardless of the actual or proposed capital structure.)
For a steady state business, a quick estimate of it would be:
Profit before interest and tax x (1 - corporate tax rate)
( PBIT x (1 - T) )
