Free Cash Flow to the Firm

on . Posted in Project Management Engineering

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

 

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