Levered Free Cash Flow is considered equivalent to what?

Levered Free Cash Flow represents the cash that a business generates after accounting for its operating expenses and any interest payments on debt. This measure reflects the cash available to equity holders, as it is the cash generated specifically after servicing debt obligations.

Equity Value (EqV) accounts for the total market value of a company's equity, which includes shares outstanding multiplied by the share price. Since Levered Free Cash Flow is the cash that can be distributed to equity holders, it can be seen as a component driving the overall Equity Value of a firm. In essence, higher Levered Free Cash Flow contributes positively to the valuation of the company from an equity perspective, linking the two concepts closely together.

Other options do not connect to Levered Free Cash Flow in the same way. For example, the Debt to Equity ratio is a measure of a company's financial leverage and how much debt it is using relative to its equity, rather than a cash flow measure. Similarly, Net Cash Flow from Operations represents cash generated from core operating activities before considering other cash flows such as those from financing or investing, and therefore it does not account for interest payments, making it different from Levered Free Cash Flow. Lastly, Capital Expenditures are cash outflows for acquiring or upgrading