Cash Flow From Operations CFO Calculations & Ratios Arbor Asset Allocation Model Portfolio AAAMP Value Blog
For the comparison to be as close to being “apples to apples” as possible, the non-core operating income/(expenses) and non-recurring items should be adjusted out to prevent the output from being skewed. Normalizing cash flows becomes particularly relevant when performing trading comps using FCFF-based multiples, in which the target company and its comparables (i.e., the