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Working Capital Projections Using Assumptions (Helpful)

Part – 4

In our last tutorial, we have understood detailed calculations of FCFF. In this article, we will learn working capital projections using assumptions.

Step 2 – Working capital projections using simple assumptions

working capital projections

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Working Capital Projection Solutions

Working Capital Projection

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Step 3: Calculate Free Cash Flows using the EBIT Formula

Free Cash Flows using EBIT Formula

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Forecast of FCFF

Free Cash Flow to Firm Forecast

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What Next

We learnt about working capital projections using simple assumption in this article. Next, we will look at terminal Value. Till then, Happy Learning!

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