Skip to main content

 

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. 

Piping Designer Logo 1