Free Cash Flow to the Firm
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.