Free cash flow to the firm, abbreviated as FCFF, is the available cash flow for investors.
free cash flow to the firm Formula |
| \(\large{ FCFF = OCF + IE \; \left( 1 - TR \right) - CapEx }\) |
| Symbol |
| \(\large{ FCFF }\) = free cash flow to the firm |
| \(\large{ OCF }\) = operating cash flow |
| \(\large{ CapEx }\) = capitol expenditures |
| \(\large{ IE }\) = interest expense |
| \(\large{ TR }\) = tax rate |
