Comments on: Calculate Maintenance Capex in FCF http://www.oldschoolvalue.com/blog/valuation-methods/calculate-maintenance-capital-expenditure-in-fcf/?source=rss Perform Stock Valuation Automatically Sat, 11 Feb 2012 19:05:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jae Jun http://www.oldschoolvalue.com/blog/valuation-methods/calculate-maintenance-capital-expenditure-in-fcf/comment-page-1/#comment-5797 Jae Jun Sun, 20 Jun 2010 04:57:23 +0000 http://www.oldschoolvalue.com/blog/?p=1696#comment-5797 @ Micahel, I think you've misread something. I wrote that the common practice is to "assume" that capex = d&a. It's an easy way of calculating if you quickly want to run the numbers. I use the Greenwald method in my spreadsheets. @ Micahel,

I think you’ve misread something. I wrote that the common practice is to “assume” that capex = d&a. It’s an easy way of calculating if you quickly want to run the numbers.
I use the Greenwald method in my spreadsheets.

]]> By: Micahel http://www.oldschoolvalue.com/blog/valuation-methods/calculate-maintenance-capital-expenditure-in-fcf/comment-page-1/#comment-5796 Micahel Sun, 20 Jun 2010 03:56:22 +0000 http://www.oldschoolvalue.com/blog/?p=1696#comment-5796 Hello, I have a question about your CAPEX calculation. You say that it = Depreciation and Amortization,, Yet in the example it it differs from D&A.. Please elaborate. Hello,

I have a question about your CAPEX calculation. You say that it = Depreciation and Amortization,, Yet in the example it it differs from D&A.. Please elaborate.

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/valuation-methods/calculate-maintenance-capital-expenditure-in-fcf/comment-page-1/#comment-2657 Jae Jun Mon, 29 Jun 2009 05:41:10 +0000 http://www.oldschoolvalue.com/blog/?p=1696#comment-2657 <strong>@ Borislav</strong> Interesting point about the car replacement analogy but it's important to remember the point that says: "So how does one overcome these discrepancies? By analysing this ratio over a period of several years, not just one. This way, you'll be able to see the difference between the actual cash capex figure and the accounting depreciation." Thanks for the link as well. @ Borislav
Interesting point about the car replacement analogy but it’s important to remember the point that says: “So how does one overcome these discrepancies? By analysing this ratio over a period of several years, not just one. This way, you’ll be able to see the difference between the actual cash capex figure and the accounting depreciation.”

Thanks for the link as well.

]]> By: Borislav Koev http://www.oldschoolvalue.com/blog/valuation-methods/calculate-maintenance-capital-expenditure-in-fcf/comment-page-1/#comment-2633 Borislav Koev Wed, 24 Jun 2009 14:41:02 +0000 http://www.oldschoolvalue.com/blog/?p=1696#comment-2633 Thank you for your very interesting article and your blog! but check this out! ...any long-term car owner knows, it costs more to replace a 'depreciated' old vehicle with a modern equivalent. http://www.intelligentinvestor.com.au/articles/102/Crunching-cash-flow-ratios-.cfm?articleID=19600 I have the same feeling that the Maintenance Capital Expenditure should be a bit higher than the depreciation. How high - I'm investigating at the moment. Regards, Borislav Thank you for your very interesting article and your blog!

but check this out!
…any long-term car owner knows, it costs more to replace a ‘depreciated’ old vehicle with a modern equivalent.

http://www.intelligentinvestor.com.au/articles/102/Crunching-cash-flow-ratios-.cfm?articleID=19600

I have the same feeling that the Maintenance Capital Expenditure should be a bit higher than the depreciation. How high – I’m investigating at the moment.

Regards,

Borislav

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