Walk me through how to get from Revenue to Unlevered Free Cash Flow in your DCF projections

Answer hidden.


First, Subtract COGS and Operating Expenses from Revenue to get to Operating Income (EBIT)

Then, Multiply EBIT * (1 - Tax Rate), add back D&A and all non-cash expenses, and adjust for changes in net working capital.

Finally, subtract Capital Expenditures to give you Unlevered Free Cash Flow