How is Depreciation & Amortization treated while calculating DCF?



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Please elaborate

2 Answer(s)


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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.

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Depreciation and Amortization are non cash expenses and hence added on to the Unlevered Net Income

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