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Fundamentals

FCF: Why Subtract Out Changes in Working Capital?

A change in working capital can either be positive or negative. A positive change reflects a cash outflow, whereas a negative difference represents a cash inflow.

How to Deal With Negative Cash Flows in a DCF

Any asset that is not generating cash flows right now can still be valued with the DCF as long as those cash flows are estimated to become positive at some point in the future.

Pros and Cons of Splitting a Stock

While stock splits don’t affect the fundamental value of a company, they certainly can have notable effects on how investors perceive the price of a given stock.