Free Cash Flow To Firm

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Finance

Free Cash Flow To Firm financial calculator.

Formula

FCFF = EBIT(1-Tax) + D&A - CapEx - ΔWC
  • FCFF = cash available to all investors (equity + debt)
  • Used for enterprise valuation
  • Independent of capital structure

Enterprise Cash Flow

Inputs
  • EBIT (Operating Income): 200000000 $
  • Tax Rate: 25 %
  • Depreciation & Amortization: 50000000 $
  • Capital Expenditures: 60000000 $
  • Change in Working Capital: 10000000 $

$200M EBIT × 0.75 + $50M - $60M - $10M = $95M FCFF

Frequently asked questions

How does FCFF differ from FCFE?
FCFF available to all investors (before debt); FCFE only to equity holders (after debt). Use FCFF for valuation.