DCF – Free Cash Flow

CapEx vs. D&A: A Manufacturer Mid-Expansion

This industrial manufacturer just broke ground on a new $200M plant. Walk me through what happens to CapEx, D&A, and Free Cash Flow over the next few years — and why a strong EBITDA margin doesn’t mean strong free cash flow here.

CapEx vs. D&A: An Asset-Light Software Company

Now look at a software company with the same $1.2B revenue and the same 22% EBITDA margin as the manufacturer. Walk me through why its CapEx and D&A barely move the needle on Free Cash Flow — and what would change that.