1. Pseudo-Cash Flow Measures

2.  EBITDA  Free cash flow  Discretionary cash flow Alternate Cash Flow Measures

3. EBITDA An alternative measure of operating cash flow Depreciation and/or amortization are typically the largest non-cash expenses 3

4. Free Cash Flow (FCF) Reveals the strength of a company’s cash flow Indicates how much cash flow is available for general corporate use 4 Free Cash Flow Cash flow from operations – = Capital expenditures

5. Discretionary Cash Flow (DCF) A measure of excess cash flow Indicates how much internally-generated operating cash flow is available for discretionary, value-creating actions 5 Discretionary Cash Flow Cash flow from operations – = Required debt payments – Dividend payments