medium · Investment Banking valuation-core
A company has a Stock-Based Compensation (SBC) expense of $10.0 million.
How does this affect the calculation of Unlevered Free Cash Flow (UFCF)?
- It is added back to Net Income as a non-cash charge
- It is treated only as a financing activity on the statement
- It has no cash impact at all on UFCF whatsoever
- It is subtracted twice as a recurring cash operating expense
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