Free Cash Flow to the Firm

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Definition

Free Cash Flow to the Firm (FCFF) is the available cash to pay investors after all its expenses and investments in short-term and long-term assets. This cash is how a company pays its security holders and pays any debt.

Formula

YCharts Calculates this as:
Free Cash Flow Firm = Free Cash Flow + [Interest Expense * (1 - Effective Tax Rate)]

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