EBITDA as a poor proxy for both FCFF and FCFE

EBITDA as a poor proxy for both FCFF and FCFE

	FCFF	FCFE	EBITDA
NI	+	+
NCC	+	+
Int*(1-t)	+		N/A
WCInv	-	-	N/A
FCInv	-	-	N/A
Net borrowing		+	N/A
Tax paid	(*)	(*)	N/A

(*) included in NI


EBITDA is a poor proxy for both FCFF and FCFE.