# FCFF (Free Cash Flow to Firm)

FCFF (Free cash flow to firm), also known as unlevered cash flow, is the cash remaining with the company after depreciation, taxes and other investment costs are paid from the revenue and it represents the amount of cash flow that is available to all the funding holders – be it debt holders, stock holders, preferred stock holders or bond holders.

FCFF or Free Cash Flow to Firm, is one of the most important concepts in and Investment Banking firms.

Warren Buffet (1992 annual report) said, “The value of any stock, bond or business today is determined by the cash inflows and outflows – discounted at an appropriate interest rate – that can be expected to occur during the remaining life of the asset.”

Warren Buffet has been focusing on a company’s ability to generate Free Cash Flow to Firm. Why does this really matter? This article will focus on understanding what “Free Cash Flows” are in general and why FCFF should be used to measure a company’s operating performance. This article is structured as per below –

Learn to Calculate FCFF in Excel along with Alibaba FCFF Valuation

Here we discuss FCFF, however, if you want to know more about FCFE, you can look at .

If you want to learn Equity Research professionally, then you may want to look at 40+ video hours of Equity Research Course

## #1 – What is Free Cash Flow to Firm or FCFF

In order to gain an intuitive understand of Free Cash Flow to Firm (FCFF), let us assume that there is a guy named Peter who started his business with some initial equity capital (let us assume \$500,000), and we also assume that he takes a bank loan of another \$500,000 so that his overall finance capital stands at \$1000,000 (\$1 million).

• The business will begin earning revenues, and there would be some associated expenses.
• As for all the businesses, Peter’s business also requires constant maintenance capital expenditure in assets each year.
• Debt Capital Raised in year 0 is \$500,000
• Equity Capital raised in year 0 is \$500,000
• There is no and as the business is yet to start.

### Scene # 1 – Peter’s Business with not enough earnings

###### Year 1
• We assume that the business has just started and generates a modest \$50,000 in year 1
• Cash flow from Investments in Assets is higher at \$800,000
• position at the end of the year is \$250,000

###### Year 2
• Let us now assume that Peter’s business generated only \$100,000 in Year 2
• In addition, in order to maintain and run the business, he needs to regularly invest in assets (maintenance Capex) of \$600,000
• What do you think will happen in such a situation? Do you think the Cash at the beginning of the year is sufficient?- NO.
• Peter will need to raise another set of capital – this time, let us assume he raises another \$250,000 from the bank.

###### Year 3
• Now let us analyze a stressed situation for Peter :-). Assuming that his business is not doing well as expected and was able to generate only \$100,000
• Also, as discussed earlier, maintenance capital expenditure cannot be avoided; Peter must spend another \$600,000 to keep the assets running.
• Peter will require another set of external funding to the tune of \$500,000 to keep the operations running.
• Debt financing of another \$250,000 at a relatively higher rate and Peter invests another \$250,000 as equity capital.

###### Year 4
• Again in year 4, Peter’s business was able to generate only \$100,000 as cash flows from operations.
• Maintenance capital expenditure (unavoidable) is at \$600,000
• Peter requires another set of funding of \$500,000. This time, let us assume that he doesn’t have any amount as equity capital. He again approaches the bank for another \$500,000. However, this time the bank agrees to give him a loan at a very high rate (given the business is not in good shape and his earnings are uncertain)

###### Year 5
• Yet again, Peter was only able to generate \$100,000 as cash flows from core operations
• Capital expenditure that is unavoidable still stands at \$600,000
• This time the Bank declines to give any further loan!
• Peter is unable to carry forward the business for another year and files for bankruptcy!
• After filing for bankruptcy, Peters business assets are liquidated (sold) at \$1,500,000

###### How much the bank receives?

Bank has given a total loan of \$1500,000. Since Bank has the first right to recover their loan amount, the amount received on liquidation will be first used to serve the Bank, and Peter will receive the remaining excess amount (if any). In this case, Bank was able to recover their invested amount as the of Peter’s Asset is at \$1,500,000

###### How much Peter (shareholder) receives?

Peter has invested his own capital (equity) of \$750,000. In this case, Peter receives no money as all the liquidated amount goes to the serving of the bank. Please note the return to the shareholder (Peter) is zero.

### Scene # 2 – Peter’s Business Grows and show’s recurring earnings

Let us now take another case study where Peter’s business is not doing bad and is, in fact, growing each year.

• Peter’s business steadily grows from CFO of \$50,000 in year 1 to CFO of 1,500,000
• Peter raises only \$50,000 in year 2 due to liquidity requirements.
• Thereafter he does not need any other set of cash flow from financing to “survive” the future years.
• Ending cash for Peter’s Company grows to \$1350,000 at the end of year 5
• We see that excess cash is positive (CFO + CFI) from year 3 and is growing every year.

###### How much the bank receives?

Bank has given a total loan of \$550,000. In this case, Peter’s business is doing well and generating positive cash flows; he is able to pay off the bank loan along with interest within the mutually agreed time frame.

###### How much Peter (shareholder) receives?

Peter has invested his own capital (equity) of \$500,000. Peter has 100% ownership in the firm, and his equity return will now depend on the valuation of this business that generates positive cash flows.

## # 2 – Layman’s Definition of Free Cash Flow to Firm (FCFF)

In order to appreciate the layman’s definition of Free Cash Flow to the firm or FCFF, we must make a quick comparison of Case Study 1 and Case Study 2 (discussed above)

 Item Case Study 1 Case Study 2 Revenues Stagnant, not growing Growing Cash flow from operations Stagnant Increasing Excess Cash (CFO + CFI) Negative Positive The trend in Excess Cash Stagnant Increasing Requires Equity or Debt to business continuity yes No / Shareholder’s Value Zero or very low More than Zero
###### Lessons from the two case studies
• If excess cash (CFO + CFI) is positive and growing, then the company has value
• If Excess Cash (CFO + CFI) is negative for an extended period of time, then the return to the shareholder may be very low or closer to zero
###### Intuitive Definition of Free Cash Flow to the firm – FCFF

Broadly speaking, “Excess Cash” is nothing but Free Cash Flow to Firm or FCFF calculation. DCF valuation focuses on the cash flows generated by the Operating Assets of the business and how it maintains those assets (CFI).

FCFF formula = Cashflows from operations (CFO) + Cashflows from Investments (CFI)

A business generates cash through its daily operations of supplying and selling goods or services. Some of the cash has to go back into the business to renew fixed assets and support working capital. If the business is doing well, it should generate cash over and above these requirements. Any extra cash is free to go to the debt and equity holders. The extra cash is known as Free Cash Flow to firm

## #3 – Free Cash Flow – Analyst’s Formula

Free Cash Flow to firm formula can be represented in the following Three way –

###### 1) FCFF Formula starting with EBIT

Free Cash Flow to Firm or FCFF Calculation = EBIT x (1-tax rate) + Non Cash Charges + Changes in Working capital – Capital Expenditure

 Formula Comments EBIT x (1-tax rate) Flow to total capital, Removes capitalization effects on earnings Add: Non-Cash Charges Add back all non-cash charges like Depreciation, Amortization Add: Changes in working capital It can be outflow or inflow of cash. Watch for large swings year-to-year in forecasted Less: Capital expenditure Critical to determining CapEx levels required to support sales and margins in the forecast
###### 2) FCFF formula starting with Net Income

Net Income + Depreciation & amortization + Interest x (1-tax) + changes in Working Capital – Capital Expenditure

###### 3) FCFF Formula starting with EBITDA

EBITDA x (1-tax rate) + (Dep & Amortization) x tax rate + changes in Working Capital – Capital Expenditure

I will leave it to you to reconcile one formula with the other one. Primarily you can use any of the given FCFF formulas. As an Equity analyst, I found it easier to use the formula that started with EBIT.

### Additional notes on FCFF Formula Items

###### Net Income
• Net income is taken directly from the Income statement.
• It represents the income available to shareholders after taxes, , amortization, interest expenses, and the payment to preferred dividends.
###### Non Cash Charges
• Non-cash charges are items that affect net income but do not involve the payment of cash. Some of the common non-cash items are listed below.
###### After-tax Interest
• Since interest is tax-deductible, after-tax interest is added back to the net income
• Interest cost is cash flow to one of the stakeholder’s of the firm (debt holders), and hence, it forms a part of FCFF
###### Capital Expenditure
• Investment in fixed assets is the cash outflow required for the company to maintain and grow its operations
• It is possible that a company acquires assets without expending cash by using stock or debt
• The analyst should review the footnotes, as these asset acquisitions may not have used in the past, but may affect the forecast of future Free Cash Flow to Firm
###### Change in Working Capital

# 4 – FCFF Example in Excel

With the above understanding of the formula, let us now look at the working example of calculating Free Cash Flows to the firm. Let us assume that you have been provided and Income Statement for a company as provided below. You can download the FCFF Excel Example here

Calculate FCFF (Free Cash Flow to Firm) for the year of 2008

###### Solution

Let us try to solve this problem using the EBIT approach.

FCFF Formula =  EBIT x (1-tax) + Dep & Amort + Changes in Working Capital – Capital Expenditure

EBIT = 285, tax rate is 30%

EBIT x (1-tax) = 285 x (1-0.3) = 199.5

Depreciation  = 150

###### Changes in Working Capital

FCFF calculation = 199.5 + 150 – 75 – 300 = -25.5

Calculating Free Cash Flow to Firm is fairly straightforward. Why don’t you calculate FCFF using the other two FCFF formulas – 1) Starting with Net Income 2) Starting with

## #5 – Alibaba FCFF – Positive and Increasing FCFF

On 6th May 2014, Chinese E-commerce heavyweight Alibaba filed a registration document to go to public in the US in what may be the mother of in the US history. Alibaba is a fairly unknown entity in the US and other regions, though its massive size is comparable or even bigger than Amazon or eBay. I used a  approach for Alibaba’s valuation and found that this amazing company is valued at \$191 billion dollars!

For Alibaba DCF, I had made the financial statement analysis and forecast financial statements and then calculate Free Cash Flow to the Firm. You can download Alibaba Financial Model here.

Presented below is the Free Cash Flow to the Firm of Alibaba. The Free Cash flow tisirm is divided into two parts – a) Historical FCFF and b) Forecast FCFF.

• Historical Free Cash Flow to Firm is arrived at from the Income Statement, Balance Sheet, and Cash Flows of the company from .
• Forecast Free Cash Flow to Firm calculation is done only after forecasting the Financial Statements (we call this as preparing the financial model in excel). Financial Modeling fundamentals is slightly tricky, and I will not discuss the details and types of Financial Models in this article.
• We note that Alibaba’s Free Cash Flow to the firm is increasing year after year
• In order to find the valuation of Alibaba, we must find the present value of all the future financial years (till perpetuity – )

## #6 – Box FCFF – Negative and Growing

On 24th March 2014, Online storage company Box filed for an IPO and unveiled its plans to raise US\$250 million. The company is in a race to build the largest cloud storage platform, and it competes with the biggies like Google Inc and its rival, Dropbox. In case you want to understand further on how Box is valued, please refer to my article on Box IPO Valuation

Below are the projections of Box FCFF for the next 5 years

• Box is a classic case of high growth cloud company which is surviving due to (refer Case Study # 1)
• Box is growing at a very fast pace and should be able to generate Free Cash Flows going forward.
• Since Box Free Cash Flow to Firm is negative for the next 5 years, it may not be wise for us to calculate the value of Box using the Discounted Cash Flow approach. In this case, the approach using Relative Valuation is suggested.
• I am rather scared of this IPO and, in fact, wrote an article on Top 10 Scariest Details of Box IPO. Please note that one of the scariest details in Box IPO is the company’s Negative Free Cash Flow.

# 7 – Why does Free Cash Flows Matter

• EPS can be tweaked, but Free Cash Flow to Firm can’t – Though is widely used to measure the company’s performance, however, EPS can be easily tweaked (due to accounting policies gimmicks) by the management and may not necessarily be the best measure for performance. It is best advised to use a measure that is free from accounting gimmicks. Free Cash flow to the firm can be one such measure that cannot be manipulated by Accounting Changes.
• Cannot go bust soon if Free Cash Flow to Firm positive and growing – Companies that produce consistently higher and growing levels of Free Cash Flows to the firm are unlikely to go bust any time soon, and investors should take this into account while investing in the firm.
• Good indicator for Investors seeking Capital Appreciation – For growth-oriented investors, companies with high Free Cash Flows to the firm are likely to invest their free cash for the that are necessary to grow their core business. Growing levels of Free Cash Flows are generally an excellent indicator of future earnings gains.
• Good indicator for Investors seeking Regular dividends – For income investors, Free Cash Flows can be a reliable indicator of a company’s ability to maintain its dividend or even increase its payout.

Now that you know Free Cash flow to the firm, What about FCFE – Free Cash flow to Equity? Check out a detailed article on here.

## Conclusion

We note that the excess cash generated by the company (CFO+CFI) can be approximated as Free Cash Flow to the Firm. We also note that EPS may not be the best measure to gauge the company’s performance as it is susceptible to accounting gimmicks by the management. A better way to measure the company’s performance by and investors is to calculate Free Cash Flow to Firm (FCFF) as it looks at the company’s ability to survive and grow without external sources of funding (equity or debt). Discounting all future Free Cash Flow to the firm provided us with the . Additionally, FCFF is widely used not only by the growth investors (looking for capital gain) but also by income investors (looking for regular dividends). Positive and growing FCFF signifies excellent future earning capabilities; however, negative and stagnant FCFF may be a cause of worry for the business.

## What’s Next?

If you learned something new or enjoyed this free cash flow to a firm post, please leave a comment below. Let me know what you think. Many thanks, and take care.

### Recommended Articles

1. stefano says

great stuff as usual ! Good job!

• Dheeraj Vaidya says

2. Wilberto Msigwa says

well-explained and detailed materials

3. Wilberto Msigwa says

Well-explained, and detailed

4. IBRAHIM says

When you started calculating using EBIT … Why you used “+” instead of “-” … for Changes in Working capital ? should not you better subtract it rather than add it , so the equation become : FCFF = [EBIT x (1-tax rate)] + DEP – FCInv – WCInv ……… ?

• Dheeraj Vaidya says

Hi Ibrahim, thanks for your question. Looks like there is common confusion here regarding the changes in WC. I have added the “changes in working capital”. Reason is that I calculate the changes in working capital that take care of the “Cash inflows” or “cash outflows” directly (instead of formula). For eg. If Working capital 2016 = \$150 million and Working Capital of 2015 is \$100. What does this mean.. absolute changes will be (\$150 million – \$100 million) = \$50 million. However, since this is an increase in working capital, it is a “cash outflow”. Hence, while taking this in FCFF formula, I directly use this number as -50 million (cash outflow). Hope you understood this now.

5. Munk says

Thank you for this educational tutorial Dheeraj.

Kind regards from Mongolia

6. Dharam says

Hi Dheeraj

Thanks for comprehensively providing the explanation on FCFF. Below is the doubt on which I need some more clarification.

Suppose I want to calculate current FCFF, so how do I take tenure into consideration for calculating say coming 4th quarter 2016 (FCFF of company on DEC 2016 through which I would get to know whether company is under valued or overvalued).

It would to great full if you can shed some light.

Thank you

• Dheeraj Vaidya says

Hi Dharam, are you doing a quarterly forecast of FCFF ?

7. Shalin says

Hi Dheeraj,

Thanks for providing the nuts & bolts of FCFF. I have some questions regarding this topic as follows :-
1) Can we get all non cash items like, restructuring exp/gains, gain/loss from the footnotes of annual reports..?
2) Should we take all these non-cash items same as it was last year when we forecast the financial statements for five/seven years OR we can forecast these also..?
Please revert to me towards my queries.
Thanks once again.

• Dheeraj Vaidya says

1) yes, you will get all the restructuring exp/gains and losses in the annual report.
2) these non cash items are very difficult to project and hence, we typically take these as 0 (instead of taking it as constant like last year etc)
thanks,
Dheeraj

8. Shaubhik D.Roy says

Hi Dheeraj

In case a company continuously has negative free cash flows for the past 3-5 years, how can we use the the same while calculating fair price of the stock by DCF model?

• Dheeraj Vaidya says

Hi Shaubhik,

FCFF negative in the past is not the problem.It is the future FCFF that creates issues. If the forecast for the next 5-10 years results in negative FCFF then DCF becomes redundant. In that case it is much better to use Relative Valuations.

do check the Box IPO Valuations in which i exactly the same situation.

Best,
Dheeraj

9. shubham says

Hi dheeraj,
It was really a very nice effort from your side and was a very resourceful article and I am really glad to find this site .

Also, Can you please provide a valuation of any indian firm by taking data from its annual report ? I have been trying to value WABCO India which is an auto ancillaries Company but i am not satisfied with the valuation.It will be really helpful to me if you could provide the insight taking the firm as an example.

• Dheeraj Vaidya says

Hey Shubham,
At this stage i have not picked up an Indian company example for valuation due to lack of data available. However, i will keep this in mind if i do so in the near future.
Best,
Dheeraj

10. George says

Hello Dheeraj, can you please explain me why in FCFF formula the changes in working capital are calculated as current year 2008 minus previous one – 2007, but in the FCFE formula is the other way around based on the 2 examples you showed.

• Dheeraj Vaidya says

Hi George, can you please refer to the answer above (for Ibrahim’s question). I guess that will solve your concerns.

Dear Mr. Dheeraj, good day!
Thank You for accessible explanation. It is truly invaluable! Only a professional can are available to analyze the information for understanding. I am a power engineer and then with the help of You very quickly begin to delve into the details. Thank you so much!

• Dheeraj Vaidya says

thanks Vlad for the appreciation. I am glad you found this useful.
Thanks,
Dheeraj

• alex Wang says

so clear and useful.

thanks,

Dheeraj your article was well explaining but when I put all these formulas in the real world companies financial data, all the above mentioned formula gives me different answers. Can you please help me in this respect. I can share my workings along with the financials of a company which I am currently analyzing with you. Looking forward for your response.

Regards

• Dheeraj Vaidya says

Sure. You can share with me the financial data, hope it is not confidential.

Thanks,
Dheeraj

Thank you very much Dheeraj. I have emailed you my workings along with audited accounts of a company and don’t worry as they are not confidential.

13. Akanksha Agrawal says

Amazing Dheeraj sir.
You have cleared my all doubts related to FCFF.
But what about FCFE. Pls explain that also

Regards
Akanksha

14. Sipika says

In the FCFF starting with Net Income, why have you added back post tax Interest? Isn’t Interest an expnse that the firm won’t retain? Then how can it be a part of the Free CF?

• Dheeraj Vaidya says

Hi Sipika, if you try to solve this – EBIT x (1-tax) = (EBT + Interest) x (1-tax) = EBTx(1-tax) + Interest x (1-tax) = Net Income + Interest x (1-tax).

Hope it is clear now.

Thanks,
Dheeraj

15. Sipika says

Liked the simplicity. Thanks!

• Dheeraj Vaidya says

thanks :-)

16. someshwar morey says

Thank you dheeraj. now i understand how FCFF is used for valuation. thank you so much dheeraj……………………………………

• Dheeraj says

thanks Someshwar!

17. Abdulaziz says

That is an elegant and superb explanation, please keep contributing the same.

18. Pratik Biyani says

Thank you sir. You illustrated FCFF with accurate briefings and examples!

• Dheeraj says

Thanks Pratik. I am glad you liked it. :-)

19. muath aljalamneh says

thank you dheeraj but I have question that after FCFF how I can calculate residual value and the net PV after discount rate , actually I cant deal with this number I need help.
I ll appreciate that if you send templates to understand it very well

20. Anshuman Mishra says

Hi,

wanted to know the reason for not including escrow receivables in change in working capital to calculate FCFF

• Dheeraj Vaidya says

Hi Anshuman, it could be because of certain restriction posed on escrow receivables. It could be based on certain underlying stocks that are restricted in nature.

21. Deepak Sharma says

Would appreciate your help as I am doing a real case and standing a negotiation very soon for the same.

While doing DCF starting EBIDTA, is this approach correct?

EBIDTA
– Interest Expense (net of tax)
+ Interest income on additional cash
– Capex
– changes in working capital
– Tax outflow
– Any other outflows
_____________________________________
Free cash flow to firm
_____________________________________
Discount with appropriate WACC + calculate terminal value

Gives us
Enterprise value

– Debt
– Preference shares or any other minority
______________________________________
Equity Value
______________________________________

• Dheeraj Vaidya says

Looks good to me except one. you need to add the cash and cash equivalents (current) in the Equity value (last step)/

22. Phương says

If FCFF < 0, how to stock valuation ???

• Dheeraj says

Hi Phurong,

If FCFF<0, then you need to apply relative valuation methodologies to value this firm. You can look at Relative Valuations article here. Also, in Box IPO case, we saw that FCFF<0, hence, we applied relative valuation techniques.

23. vaibhav says

please help me and tell me why do we not consider cash and notes payable during fcff and 1 morething u hv mentioned that gains and losses are deducted and added back resp. ..but y

• Dheeraj Vaidya says

Hi Vaibhav,

1. We do not adjust for cash as we take care of this in the final EV formula = Equity value + debt – cash
2. likewise, we do not adjust for notes (debt) for the same reason above.
3. Gains and losses are deducted and added back as these are non cash expenses and remember we are calculating free “cash flows”

24. Khoa Do says

How about if the company is in the growth stage of life cycle? Their net income are positive or even growth years by years but the FCFF is negative because they need more money to expand the business and they have to borrow from the bank? In this case should we invest in this company?

• Dheeraj says

hi,

In such cases with negative FCFF, it is difficult to value the company on the basis of Discounted Cash flows. In such cases, you will have to look at other valuation methods like Relative Valuations etc for valuing growth companies. You may look at this example where i valued Box Inc (which had negative FCFF)

• vaibhav says

• Khoa Do says

Hi,

Thank you for your reply. I wanna ask one question: are the longterm financial investments or investments in affiliate company considered as capital expenditure? Do they exist in FCFF formular?
THanks

• Dheeraj says

Hi Khoa,

The primary reason for using FCFF is to find the overall valuation of the company. Discounting this FCFF provides us with the Enterprise value of the firm. FCFF formula generally does consider long term financial investments in the formula. We adjust for such figures after we have arrived at the Enterprise Value. For example, Minority Interest, Investment in affiliates etc.. all of these are adjusted from the Enterprise Value (found using FCFF).

thanks,
Dheeraj

• Khoa Do says

Hi Dheeraj,

Do you have the FCFF calculation from real company? I’ve looked at financial statements from real company and there are a lot of items confused me. I have no idea that should I put those items in the FCFF formula or not.
THanks

25. Rakesh says

hi dheeraj, good to see this clear presentation, i came across FCF many time but today exactly learnt and understand how it arrives and how can it links to business valuation. Tnx…

• Dheeraj says

Thanks Rakesh :-)

26. Surya says

Dear Deeraj,

Thank you for making this educational blog. I really like the way you elaborate complex financial concept and make it easy to understand. I find your presentation very insightful and provides clarity for many complex financial concepts that I find challenging throughout my study back in university.

Keep up the good work and keep inspiring people!

Thank you again.

Yours sincerely,

Surya

27. K.Lalitha says

Very simple & easy to understand. Can you write about BONDS this simple.-ytm,call,put option prices, valuation,etc.?

28. Ankur Gupta says

Great Work!!!!!!!!

One of the best article i have ever read!!!!

Waiting for more

Can u pls tell me while calculating FCFF from Net Income why we dont adjust D&A with tax rate as we had adjusted the interest expense.

29. vincent says

Have you ever thought to write complete valuation books or financial modeling books? You will be a very good finance writer:)

• Dheeraj says

Thanks Vincent for the encouragement :-) . Unfortunately, no such current plans at this stage for books. Let’s see in the near future if I can pull out one!

• Jatin says

I will buy the first book – first edition .

Gratitude for sharing.
That was quite useful and i really appreciate that.

Thanks,

thanks for sharing.
that was quite useful and i really appreciate that.

32. Manpreet Khandpure says

Very detailed and explained with the use of real-time examples. Thank you very much for this article.

33. Binodgopal Mukherjee says

Thanks Dhiraj.Simple. Lucid.Eay to learn.

34. Mohan H says

Dear Dheeraj,

Thank you very much, it was very fruitful information. Like to post more like this.

Regards
Mohan.H

35. deepak says

Thanks for yor valuables and essence of learning.

• deepak says

Thanks Dhiraj, It is very valuable for learning to all.

36. bugzogolito says

Thank you Dheeraj, great materials! I like the way you simplified all of these important concepts (this one and other stuff here) and made it trouble-free to digest….

#waiting for more

Cheers!

37. Neeraj says

Very useful stuff explained in simple step. Do you take one to one consultancy.

38. Ravi says

Very well written. I liked the Alibaba and Box IPO example. Do your provide consultancy to firms?

39. Viral says

Thank you Dheeraj. This is one of the most comprehensive resource on FCFF. I liked the overall presentation of this difficult concept.

• Wall Street Mojo says