{"id":34547,"date":"2022-11-25T16:10:32","date_gmt":"2022-11-25T16:10:32","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?post_type=videolectures&#038;p=34547"},"modified":"2022-11-25T16:10:34","modified_gmt":"2022-11-25T16:10:34","slug":"what-is-free-cash-flow-valuation-how-to-calculate-free-cash-flow-valuation","status":"publish","type":"videolectures","link":"https:\/\/www.5paisa.com\/finschool\/finflix\/what-is-free-cash-flow-valuation-how-to-calculate-free-cash-flow-valuation\/","title":{"rendered":"What is Free Cash flow Valuation &#038; How to calculate Free Cash Flow Valuation\u00a0"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"34547\" class=\"elementor elementor-34547\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-38e0c01 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"38e0c01\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-c40f1fa elementor-hidden-tablet elementor-hidden-mobile\" data-id=\"c40f1fa\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f20fb96 elementor-widget elementor-widget-shortcode\" data-id=\"f20fb96\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\">\t<div class=\"responsive-container\"><div id=\"player\"><\/div><\/div> \n\n\t<script>\n\t  var tag = document.createElement('script');\n      tag.src = \"https:\/\/www.youtube.com\/iframe_api\";\n      var firstScriptTag = document.getElementsByTagName('script')[0];\n      firstScriptTag.parentNode.insertBefore(tag, firstScriptTag);\n      var player;\n      function onYouTubeIframeAPIReady() {\n        player = new YT.Player('player', {\n          videoId: '',\n        });\n      }\n      function setCurrentTime(slideNum) {\n        \/\/var object = [ 0, 133, 193 ];\n        player.seekTo(slideNum);\n      }<\/script>\n <\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-171af40 elementor-hidden-desktop elementor-widget elementor-widget-shortcode\" data-id=\"171af40\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\"><ul id=\"timestamp\">\n\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"0\">\n\t\t<span class=\"timestamp_time\">00:00:00<\/span>\n\t\t<span class=\"timestamp_text\">Introduction<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"0\">\n\t\t<span class=\"timestamp_time\">00:00:00<\/span>\n\t\t<span class=\"timestamp_text\">What is discounted cash flow?<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"28\">\n\t\t<span class=\"timestamp_time\">00:00:28<\/span>\n\t\t<span class=\"timestamp_text\">Dividend discounted model<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"56\">\n\t\t<span class=\"timestamp_time\">00:00:56<\/span>\n\t\t<span class=\"timestamp_text\">Types of cashflows <\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"100\">\n\t\t<span class=\"timestamp_time\">00:01:40<\/span>\n\t\t<span class=\"timestamp_text\">Free cashflow to the equity <\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"188\">\n\t\t<span class=\"timestamp_time\">00:03:08<\/span>\n\t\t<span class=\"timestamp_text\"> Discounting factor <\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"245\">\n\t\t<span class=\"timestamp_time\">00:04:05<\/span>\n\t\t<span class=\"timestamp_text\">Weighted average cost of capital<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"315\">\n\t\t<span class=\"timestamp_time\">00:05:15<\/span>\n\t\t<span class=\"timestamp_text\">Calculate average free cashflow<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"356\">\n\t\t<span class=\"timestamp_time\">00:05:56<\/span>\n\t\t<span class=\"timestamp_text\">Estimating future cashflows for next 10 years  <\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"405\">\n\t\t<span class=\"timestamp_time\">00:06:45<\/span>\n\t\t<span class=\"timestamp_text\">Calculate the terminal value<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"455\">\n\t\t<span class=\"timestamp_time\">00:07:35<\/span>\n\t\t<span class=\"timestamp_text\">Terminal Value<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"570\">\n\t\t<span class=\"timestamp_time\">00:09:30<\/span>\n\t\t<span class=\"timestamp_text\">Free Cashflow Valuation<\/span>\n\t\t<\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t<\/ul>\n<script>\n\tjQuery('#timestamp li a').click(function() {\n\t\tsetCurrentTime(jQuery(this).attr(\"id\"));\n\t\tjQuery(this).parent().addClass(\"active\");\n\t});\n<\/script>\n<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9a986cd elementor-widget elementor-widget-shortcode\" data-id=\"9a986cd\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\"><ul id=\"timestamp\">\n\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"0\">\n\t\t<span class=\"timestamp_time\">00:00:00<\/span>\n\t\t<span class=\"timestamp_text\">Introduction<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"0\">\n\t\t<span class=\"timestamp_time\">00:00:00<\/span>\n\t\t<span class=\"timestamp_text\">What is discounted cash flow?<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"28\">\n\t\t<span class=\"timestamp_time\">00:00:28<\/span>\n\t\t<span class=\"timestamp_text\">Dividend discounted model<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"56\">\n\t\t<span class=\"timestamp_time\">00:00:56<\/span>\n\t\t<span class=\"timestamp_text\">Types of cashflows <\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"100\">\n\t\t<span class=\"timestamp_time\">00:01:40<\/span>\n\t\t<span class=\"timestamp_text\">Free cashflow to the equity <\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"188\">\n\t\t<span class=\"timestamp_time\">00:03:08<\/span>\n\t\t<span class=\"timestamp_text\"> Discounting factor <\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"245\">\n\t\t<span class=\"timestamp_time\">00:04:05<\/span>\n\t\t<span class=\"timestamp_text\">Weighted average cost of capital<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"315\">\n\t\t<span class=\"timestamp_time\">00:05:15<\/span>\n\t\t<span class=\"timestamp_text\">Calculate average free cashflow<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"356\">\n\t\t<span class=\"timestamp_time\">00:05:56<\/span>\n\t\t<span class=\"timestamp_text\">Estimating future cashflows for next 10 years  <\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"405\">\n\t\t<span class=\"timestamp_time\">00:06:45<\/span>\n\t\t<span class=\"timestamp_text\">Calculate the terminal value<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"455\">\n\t\t<span class=\"timestamp_time\">00:07:35<\/span>\n\t\t<span class=\"timestamp_text\">Terminal Value<\/span>\n\t\t<\/a><\/li>\n\t\t\t<li><a href=\"javascript:void(0);\" \n\t\t   id=\"570\">\n\t\t<span class=\"timestamp_time\">00:09:30<\/span>\n\t\t<span class=\"timestamp_text\">Free Cashflow Valuation<\/span>\n\t\t<\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t<\/ul>\n<script>\n\tjQuery('#timestamp li a').click(function() {\n\t\tsetCurrentTime(jQuery(this).attr(\"id\"));\n\t\tjQuery(this).parent().addClass(\"active\");\n\t});\n<\/script>\n<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-2e00f37\" data-id=\"2e00f37\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d4a8ed6 elementor-widget elementor-widget-heading\" data-id=\"d4a8ed6\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">In The Episode<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-58dcc62 elementor-hidden-desktop elementor-widget elementor-widget-heading\" data-id=\"58dcc62\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">In The Episode<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c9940d2 elementor-widget elementor-widget-text-editor\" data-id=\"c9940d2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Know about free cash flow meaning, valuation and how it is calculated in this video. Understand both the types of cashflows i.e., Free Cashflow to the firm &amp; Cash flow to the Equity and its calculation. It is very important to know which kind of valuation model is appropriate for calculation in various scenarios.<\/p><p>Free cashflow is cash available to the equity shareholders of a company after all paying expenses. Know how to calculate free cashflow to the firm &amp; free cashflow to the equity and understand the calculating it using the formula shown in the video. Know about various terms, models and it\u2019s calculation explained in detail by our expert.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Series 6 Episode 9<\/p>\n","protected":false},"author":1,"featured_media":34558,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-34547","videolectures","type-videolectures","status-publish","format-standard","has-post-thumbnail","hentry","video-lecture-category-valuation-methodology"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/videolectures\/34547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/videolectures"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/videolectures"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=34547"}],"version-history":[{"count":20,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/videolectures\/34547\/revisions"}],"predecessor-version":[{"id":34568,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/videolectures\/34547\/revisions\/34568"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media\/34558"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=34547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}