🏢 FCFF Calculator
Calculate Free Cash Flow to Firm (FCFF)
Positive for increase, negative for decrease (optional, default 0)
How to Use This Calculator
Enter EBIT
Input the EBIT (Earnings Before Interest and Tax) - operating income before interest and taxes.
Enter Tax Rate and Other Items
Enter the tax rate (as percentage), depreciation, capital expenditures, and change in working capital (optional, defaults to 0 if omitted).
Review FCFF
See the free cash flow to firm (FCFF) - the cash available to all stakeholders (debt and equity holders) before debt obligations. FCFF is used for enterprise valuation.
Formula
FCFF = EBIT × (1 - Tax Rate) + Depreciation - CapEx - Change in Working Capital
Example Calculation:
If EBIT $500,000, tax rate 25%, depreciation $50,000, CapEx $100,000, change in working capital $20,000:
• FCFF = ($500,000 × 75%) + $50,000 - $100,000 - $20,000 = $305,000
• This is the cash available to all stakeholders
About FCFF Calculator
An FCFF (Free Cash Flow to Firm) calculator helps you calculate the cash available to all stakeholders (debt and equity holders) before debt obligations. FCFF = EBIT × (1 - Tax Rate) + Depreciation - CapEx - Change in Working Capital. FCFF represents the cash available to both debt and equity holders and is used for enterprise valuation using discounted cash flow (DCF) models. FCFF is also called unlevered free cash flow because it's calculated before debt financing effects.
When to Use This Calculator
- Enterprise Valuation: Calculate FCFF for enterprise valuation
- DCF Analysis: Use FCFF in discounted cash flow models
- Investment Analysis: Analyze enterprise value and cash generation
- Financial Analysis: Evaluate cash available to all stakeholders
Understanding FCFF
- Firm Cash Flow: Cash available to all stakeholders
- Before Debt: Calculated before debt financing effects
- Unlevered: Also called unlevered free cash flow
- Enterprise Valuation: Used in DCF models for enterprise valuation
Why Use Our Calculator?
- ✅ Enterprise Valuation: Calculate FCFF for enterprise valuation
- ✅ DCF Analysis: Use FCFF in DCF models
- ✅ Investment Analysis: Analyze enterprise value
- ✅ Financial Analysis: Evaluate cash to all stakeholders
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is FCFF (Free Cash Flow to Firm)?
FCFF (Free Cash Flow to Firm) is the cash available to all stakeholders (debt and equity holders) before debt obligations. FCFF = EBIT × (1 - Tax Rate) + Depreciation - CapEx - Change in Working Capital. FCFF represents the cash available to both debt and equity holders and is used for enterprise valuation using discounted cash flow (DCF) models. FCFF is also called unlevered free cash flow because it's calculated before debt financing effects.
How is FCFF different from FCFE?
FCFF is cash available to all stakeholders (before debt), while FCFE (Free Cash Flow to Equity) is cash available to equity holders (after debt obligations). FCFF = EBIT × (1 - Tax) + Depreciation - CapEx - Change in Working Capital, while FCFE = Operating Cash Flow - CapEx + Net Debt Issued. FCFF is used for enterprise valuation, while FCFE is used for equity valuation. FCFF doesn't account for debt financing, while FCFE does.
Why is FCFF important for enterprise valuation?
FCFF is important for enterprise valuation because it represents the cash available to all stakeholders. It's used in discounted cash flow (DCF) models to value the entire enterprise (debt + equity) by discounting future FCFF. FCFF shows: (1) Enterprise cash flow - cash available to all stakeholders, (2) Enterprise value - value of the entire firm, (3) Unlevered cash flow - cash flow before debt effects, (4) Valuation basis - foundation for enterprise valuation. FCFF is a key input in enterprise valuation models.
What is change in working capital?
Change in working capital is the change in current assets minus current liabilities from one period to the next. It represents the cash tied up or freed from working capital. Positive change means cash is tied up in working capital (reduces FCFF), while negative change means cash is freed from working capital (increases FCFF). Change in Working Capital = (Current Assets - Current Liabilities) current period - (Current Assets - Current Liabilities) previous period.