Operating Cash Flow (OCF) Method

The objective of the method is to assess a company based on its future operational ability to generate cash flow, while also integrating the value of non-operating assets (e.g., unused properties).

📐 Core Formula

EV = (OCF / WACC) + SA + NWC – D

Where:

– OCF: Stabilized Operating Cash Flow

– WACC: Weighted Average Cost of Capital

– SA: Surplus Assets (e.g., unused properties, non-strategic investments)

– NWC: Net Working Capital (economic)

– D: Net financial debt

🔍 How to Calculate OCF

OCF = NOPAT + Depreciation – Capex