Creating Shareholder Value with Free Cash Flow and Economic Profit

This course will offer participants the knowledge and ability to use Free Cash Flow and Economic Profit as business management tools to create value for shareholders. Participants will learn why both Free Cash Flow and Economic Profit are superior to net income in evaluating business performance, and how to use these concepts to analyze current and future investment opportunities. This course will help participants answer questions that all businesses face on a day to day basis such as, 'What is the value of my current business operations?', 'Should I invest in new manufacturing capacity now in order to meet future demand?', and 'Should I divest certain existing businesses today, and how will that impact corporate value?'  This webcast will provide the Free Cash Flow and Economic Profit tools that a business professional will need to compete effectively in an economy that is fast moving, and ever changing.


*Evaluate why net income, EBITDA, and cash flow from operations are flawed measures of shareholder value creation

*Determine the three specific shortfalls of net income as a measure of company performance

*Define Free Cash Flow and Economic Profit and describe why they are superior performance metrics for determining shareholder value creation

*Calculate net operating profit after taxes and invested capital as components of Free Cash Flow and Economic Profit

*Determine what return on investment is and how this calculation is used in comparison to cost of capital

*Understand the idea of optimal investment horizon and how this concept can be used to make future investment or disinvestment decisions


*Free Cash Flow


*Analyzing Investment Opportunities

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Designed For

Chief Executive Officers, Chief Financial Officers, Financial Analysts, Presidents, Controllers, Finance Students, Financial Managers, Accounting Students



Advanced Preparation




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