# Free cash flow



## TPI (17 July 2014)

Hi,
Is there a quick way to find this figure for ASX stocks without going into the annual reports to look at the cash flow statements?
I take it to be net operating cash flow - property/plant/equipment expenditure.
Thanks!


----------



## skc (17 July 2014)

TPI said:


> Hi,
> Is there a quick way to find this figure for ASX stocks without going into the annual reports to look at the cash flow statements?
> I take it to be net operating cash flow - property/plant/equipment expenditure.
> Thanks!




Some brokers and data providers (e.g. Comsec, Iress) may have them in a format that's easier to access... 

However, it's always good to check the original company annoucnements just to make sure there aren't funny one-off's etc.


----------



## TPI (19 July 2014)

skc said:


> Some brokers and data providers (e.g. Comsec, Iress) may have them in a format that's easier to access...
> 
> However, it's always good to check the original company annoucnements just to make sure there aren't funny one-off's etc.




Thanks skc, will probably just calculate myself to start with.


----------



## ROE (19 July 2014)

TPI said:


> Thanks skc, will probably just calculate myself to start with.




Like skc said double check with company report as it is the source of truth but if you have comsec it is very easy

Free cash flow can be derived by subtracting capital expenditure per share from cash flow per share column.

you can use comsec to do the initial calculation and if you want to buy the stocks double check with the annual report, that way you dont need to fumble through the annual report for stuff you dont want


----------



## TPI (21 July 2014)

ROE said:


> Like skc said double check with company report as it is the source of truth but if you have comsec it is very easy
> 
> Free cash flow can be derived by subtracting capital expenditure per share from cash flow per share column.
> 
> you can use comsec to do the initial calculation and if you want to buy the stocks double check with the annual report, that way you dont need to fumble through the annual report for stuff you dont want




Thanks for the tip ROE, I've found those figures in my brokerage account so will use this shortcut first.


----------



## galumay (19 March 2015)

I thought I would use this thread for my question instead of starting a new one, I have been using a FCF DCF model to  produce a guide to IV and the FCF I have been using is the simple version of Net Operating Cash Flow, minus Capex (using "Payment for property, plant and equipment" from the cash flow statement).

In my research I have realised that the more sophisticated models use a FSFE model which uses the formula 

FCFE = NPAT-(Capex-Depreciation)*(1-DR)-(Change in Working Capital)*(1-DR) 

Where Change in Working Capital is Current Assets minus Current Liabilities for current year, minus same for previous year. 

DR is the debt to equity ratio.

The difference in outcomes for FCF and FCFE is significant, so I am wondering what people who do DCF calculations here use in their models.


----------

