This Free Cash Flow (FCF) Excel Template can be a useful tool for investors. FCF measures the amount of cash a company generates after deducting the capital expenditures (acquisitions of property, plant and equipment and other major investments) from its operating cash flow. It helps investors evaluate a company's financial performance and determine how much money are available to them. The most commonly used formula for free cash flow is as follows: Free Cash Flow = Operating Cash Flow (CFO) - Capital Expenditures Sometimes, free cash flow can also be referred to: Free Cash Flow to the Firm (FCFF) or Unlevered free cash flow: Cash flow of a company assuming that it has no debt burden. Free Cash Flow to Equity (FCFE) or Levered cash flow: cash flow available to shareholders after interest to debt holders has been paid. If you’d like to see more examples beyond this Free Cash Flow (FCF) Excel Template, make sure to check all the Valuation Templates on CFI Marketplace.
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