hi, i have a really hard discussion with my finance teacher about CAPEz, Iwan to knwo you need calculate and put in the cash flow a capex for every year, for evaluate a company value?
Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga.
Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.
Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
Yes, you would always need to calculate and put capex in cash flows. For any valuation exercise you would need to deduct the capex to calculate FCFE and discount FCFE to arrive at an valuation. Hope this helps
the reason you need to apply capex is that if the company is going to grow sales, is not realistic if it doesn´t invest in machinery, plant, equipments and so on.
the valuators usually use a minimal capex, in the scenario of a company that is not going to grow of CAPEX= Amortizacion because if you don´t invest as minimal for you amortizasion look that your assets are going to loose capability to generate sales or profits
i hope you help