New post from Aswath on Free Cash Flow - Musings on Markets: Earnings and Cash Flows: A Primer on Free Cash Flow (aswathdamodaran.blogspot.com)

Step by step on how to calculate it - indirect cash flow statement and a detailed explanation of why.

I think it is important to highlight the last part - "As a cash flow advocate, it pains me to say this, but if your game is pricing stocks, I see little benefit from replacing traditional multiples (like PE and EV to EBITDA) with free cash flow scaled pricing measures. That is because a single year’s free cash flow (to equity or the firm) actually has more noise in it, and is less informative about a company’s operating health, than a single year’s earnings (net income or EBITDA)."  - hence why Buffett etc use 'owner earnings.'