The Value Content of Different Free Cash Flow Models in Tehran Stock Exchange with Emphasis on Industry Type

The purpose of this study is to identify a certain criterion of free cash flow that has the highest value content. To achieve this purpose, using a multiple regression model, 11 commonly used free cash flow models were tested to examine the value content, once in a sample of 180 firms listed in Tehran Stock Exchange during 2009 to 2019, and once separately in manufacturing industries with high asset ratios. According to the results, 7 models out of 11 different models of free cash flow have valuable content and confirm the research hypothesis that free cash flow has valuable content. Examining the results, it can be seen that Lehn and Poulsen's (1989) model has the highest value content in the total level of listed companies and separately in industries with higher asset ratios such as base metals, automotive, chemical, petroleum, and pharmaceutical products.