Free cash flow to the firm (FCFF)

Principles of Finance Glossary

Cash flow available to all capital providers (debt and equity) after operating taxes, working-capital changes, and capital expenditures, before financing decisions: FCFF = EBIT · (1 - T) + D&A - Δ NWC - CapEx. Discounted at WACC to obtain enterprise value.

More Principles of Finance terms

Accretion / dilution (M&A)
Accrued interest
Active return
Adjusted EBITDA
After-tax cost of debt
Agency bond
Allocation effect
Altman Z-score

KomFi Academy

Stop doomscrolling. Get KomFi. KomFi: Test Prep Made Easy.

KomFi Academy requires JavaScript to run. Please enable JavaScript in your browser, or visit on a modern browser (Chrome, Safari, Firefox, Edge).

Questions? Email komfiacademy@gmail.com.

Free cash flow to the firm (FCFF)

More Principles of Finance terms

KomFi: Test Prep Made Easy

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics