How is Depreciation & Amortization treated while calculating DCF?
2 Answer(s)
vishwajit.dhere
In operating income depriciation and amortisation is already deducted. When calculating DCF, we need to add back the Depriciation and Amortisation to the unlevered net income since it is non cash expense.
Aug 26 2014 04:02 PM
Supriya
Depreciation and Amortization are non cash expenses and hence added on to the Unlevered Net Income
Feb 05 2015 08:28 PM