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