Cash flow is the movement of cash into and out of the company. This course culminates what we we’ve been building towards through the previous courses on Revenue Model, Cost Structure and Earnings Power to determine how much cash a company is generating. Ultimately, valuation depends on the company’s ability to generate cash. Once we know how much cash the company will generate in the future, we’ll have the main building block we need to determine the intrinsic value of the stock.
- Different line items on the Cash Flow Statement
- Relationship between free cash flow and valuation
- How to calculate unlevered and levered free cash flow