Discounted cash flows

AFM

Hi Sir, In case of taking discounted cash flows, why are we not adding the debt component. That is since we require FFCF .. it would be FCFE+ debt for all years right? [Video Time Stamp: 01:00] Video Details ------------- Advanced Financial Management - AFM Business Valuation #24. Illustration # 9

Varshini Rao

CA Final

★ 2K+

10-Sep-26 17:14

Answers (1)

We add debt when we have to find out EV when we have to find out equity value then fcfe is only used

Sriram Somayajula

Admin

10-Sep-26 17:24