Versions Compared

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

...

LaTeX Math Block
EV/FCF_{t} = \frac{EV_{t}}{FCF_{t}} = \frac{VeP_{t} + TD_{t} - Cash_{t} - Investments_{t}}{CFADS_{t} - DS_{t} - Cash_{t-1}}

where:

LaTeX Math Inline
bodyVe_{t}--uriencoded--P_%7Bt%7D
 is the equity value of company
LaTeX Math Inline
bodyi
 at time 
LaTeX Math Inline
bodyt

LaTeX Math Inline
body\textit{TD}_{t}
 is the total debt of the company, including both long-term and short-term debt on the balance sheet
LaTeX Math Inline
bodyCFADS_{t}
 is the cash flow available for debt service (free cash flow) at time
LaTeX Math Inline
bodyt

LaTeX Math Inline
bodyDS_{t}
 is the senior debt service at time 
LaTeX Math Inline
bodyt
 
LaTeX Math Inline
bodyCash_{t}
 is the total cash in the bank at time 
LaTeX Math Inline
bodyt

LaTeX Math Inline
bodyCash_{t-1}
 is the total cash in the bank at time 
LaTeX Math Inline
bodyt