💵 FCFE Calculator
Calculate Free Cash Flow to Equity (FCFE)
Positive for debt issued, negative for debt repaid (optional, default 0)
How to Use This Calculator
Enter Operating Cash Flow
Input the operating cash flow from the cash flow statement - cash flow from operating activities.
Enter Capital Expenditures
Enter the capital expenditures (CapEx) - cash spent on fixed assets. CapEx is typically a negative number in cash flow statements, but enter it as a positive value here.
Enter Net Debt Issued (Optional)
Optionally enter net debt issued (positive for debt issued, negative for debt repaid). If omitted, defaults to 0.
Review FCFE
See the free cash flow to equity (FCFE) - the cash available to equity holders after all expenses, investments, and debt obligations. FCFE is used for equity valuation.
Formula
FCFE = Operating Cash Flow - Capital Expenditures + Net Debt Issued
Example Calculation:
If operating cash flow $500,000, capital expenditures $100,000, net debt issued $50,000:
• FCFE = $500,000 - $100,000 + $50,000 = $450,000
• This is the cash available to equity holders
About FCFE Calculator
An FCFE (Free Cash Flow to Equity) calculator helps you calculate the cash available to equity holders after all expenses, investments, and debt obligations. FCFE = Operating Cash Flow - Capital Expenditures + Net Debt Issued. FCFE represents the cash that can be distributed to shareholders as dividends or used for share buybacks. FCFE is used for equity valuation using discounted cash flow (DCF) models. It's an important metric for assessing the value of equity and the company's ability to return cash to shareholders.
When to Use This Calculator
- Equity Valuation: Calculate FCFE for equity valuation
- Dividend Analysis: Assess cash available for dividends
- Investment Analysis: Analyze equity value and cash generation
- Financial Analysis: Evaluate cash available to equity holders
Understanding FCFE
- Equity Cash Flow: Cash available to equity holders
- After Debt: Accounts for debt obligations and changes
- Dividend Potential: Shows cash available for dividends
- Equity Valuation: Used in DCF models for equity valuation
Why Use Our Calculator?
- ✅ Equity Valuation: Calculate FCFE for equity valuation
- ✅ Dividend Analysis: Assess cash available for dividends
- ✅ Investment Analysis: Analyze equity value
- ✅ Financial Analysis: Evaluate cash to equity holders
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is FCFE (Free Cash Flow to Equity)?
FCFE (Free Cash Flow to Equity) is the cash available to equity holders after all expenses, investments, and debt obligations. FCFE = Operating Cash Flow - Capital Expenditures + Net Debt Issued. FCFE represents the cash that can be distributed to shareholders as dividends or used for share buybacks. FCFE is used for equity valuation using discounted cash flow (DCF) models. It's an important metric for assessing the value of equity and the company's ability to return cash to shareholders.
How is FCFE different from FCFF?
FCFE is cash available to equity holders (after debt obligations), while FCFF (Free Cash Flow to Firm) is cash available to all stakeholders (debt and equity holders). FCFE = Operating Cash Flow - CapEx + Net Debt Issued, while FCFF = Operating Cash Flow - CapEx (before debt). FCFE is used for equity valuation, while FCFF is used for enterprise valuation. FCFE accounts for debt financing, while FCFF doesn't.
Why is FCFE important for equity valuation?
FCFE is important for equity valuation because it represents the cash available to equity holders. It's used in discounted cash flow (DCF) models to value equity by discounting future FCFE. FCFE shows: (1) Dividend potential - cash available for dividends, (2) Share buybacks - cash available for share repurchases, (3) Equity value - cash flows to equity holders, (4) Shareholder returns - cash returns to shareholders. FCFE is a key input in equity valuation models.
What does negative FCFE mean?
Negative FCFE means the company doesn't have cash available to equity holders after expenses and investments. This can occur when: (1) High CapEx - heavy capital expenditures, (2) Debt repayment - net debt repayment exceeds cash generation, (3) Operational issues - poor cash generation, (4) Growth phase - heavy investment in growth. Negative FCFE may require external financing or indicate financial stress. Evaluate in context of business strategy and growth plans.