Also called capital expenditure
Capex
Spending on property and equipment. Reported as a negative number and shown here as the amount subtracted from operating cash flow.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Free cash flow — The cash left for investors after keeping the business running. This is the number a DCF actually values, taken from the most recent fiscal year.
- Operating cash flow — Cash the core business actually generated, before anything is spent on maintaining or expanding it. Harder to massage than reported earnings.
- DCF base — The figure the projection actually starts from: a trend-fitted or median value across several years, so one distorted year cannot become a runaway base. It can sit far from the latest year.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
