Free Cash Flow to the Firm

View Financial Glossary Index

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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