Ungeared cash flow: Difference between revisions
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imported>Doug Williamson (Add PBIT x (1- T)) |
imported>Doug Williamson (Add short-form presentation.) |
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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) ) | |||
Revision as of 11:06, 14 April 2015
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) )
