💵 Unlevered Free Cash Flow Calculator
Calculate unlevered free cash flow (UFCF)
Earnings Before Interest and Taxes
Positive for increase, negative for decrease (optional, default 0)
How to Use This Calculator
Enter EBIT
Input EBIT (Earnings Before Interest and Taxes) - operating profit before interest and taxes.
Enter Tax Rate
Enter the tax rate as a percentage (e.g., 25 for 25%).
Enter Depreciation & Amortization
Enter depreciation and amortization expenses - non-cash expenses added back to NOPAT.
Enter CapEx and Working Capital
Enter capital expenditures (investment in fixed assets) and change in working capital (optional).
Review UFCF
See the unlevered free cash flow - free cash flow available to all stakeholders (debt and equity holders) before financing costs.
Formula
UFCF = NOPAT + Depreciation + Amortization - CapEx - Change in Working Capital
NOPAT = EBIT × (1 - Tax Rate)
Example Calculation:
If EBIT $500,000, tax rate 25%, depreciation $50,000, amortization $20,000, CapEx $100,000, change in working capital $10,000:
• NOPAT = $500,000 × (1 - 0.25) = $375,000
• UFCF = $375,000 + $50,000 + $20,000 - $100,000 - $10,000 = $335,000
About Unlevered Free Cash Flow Calculator
An unlevered free cash flow (UFCF) calculator helps you calculate free cash flow available to all stakeholders (debt and equity holders) before financing costs. UFCF = NOPAT + Depreciation + Amortization - CapEx - Change in Working Capital, where NOPAT = EBIT × (1 - Tax Rate). UFCF represents cash flow generated by operations that is available to all capital providers, regardless of capital structure. UFCF is used in valuation models like DCF (Discounted Cash Flow) and is important for assessing the cash-generating ability of a business independent of its financing structure.
When to Use This Calculator
- Valuation: Calculate UFCF for DCF valuation
- Financial Analysis: Analyze cash-generating ability
- Investment Analysis: Evaluate business cash flow
- M&A Analysis: Assess target company cash flow
Understanding UFCF
- Unlevered: Before financing costs (interest)
- Free Cash Flow: Available to all stakeholders
- Valuation: Used in DCF valuation models
- Capital Structure: Independent of capital structure
Why Use Our Calculator?
- ✅ Valuation: Calculate UFCF for DCF valuation
- ✅ Financial Analysis: Analyze cash-generating ability
- ✅ Investment Analysis: Evaluate business cash flow
- ✅ M&A Analysis: Assess target company cash flow
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is unlevered free cash flow (UFCF)?
Unlevered free cash flow (UFCF) is free cash flow available to all stakeholders (debt and equity holders) before financing costs. UFCF = NOPAT + Depreciation + Amortization - CapEx - Change in Working Capital, where NOPAT = EBIT × (1 - Tax Rate). UFCF represents cash flow generated by operations that is available to all capital providers, regardless of capital structure. UFCF is used in valuation models like DCF (Discounted Cash Flow) and is important for assessing the cash-generating ability of a business independent of its financing structure.
How is UFCF different from levered free cash flow (FCFE)?
UFCF is available to all stakeholders (debt and equity), while FCFE is available only to equity holders. UFCF: (1) Unlevered - before financing costs, (2) All stakeholders - available to debt and equity holders, (3) Valuation - used in DCF valuation, (4) Capital structure independent. FCFE: (1) Levered - after financing costs, (2) Equity holders only - available only to equity holders, (3) Equity valuation - used in equity valuation, (4) Capital structure dependent. UFCF = FCFE + Interest Expense × (1 - Tax Rate) + Debt Repayment. UFCF is used for firm valuation, while FCFE is used for equity valuation.
Why is UFCF used in valuation?
UFCF is used in valuation because it: (1) Capital structure independent - represents cash flow independent of financing, (2) Firm value - used to calculate firm value (enterprise value), (3) DCF models - standard input in DCF valuation models, (4) Comparability - enables comparison across companies with different capital structures, (5) All stakeholders - represents cash available to all stakeholders. UFCF is discounted at WACC (Weighted Average Cost of Capital) to calculate enterprise value, which represents the value of the entire business to all stakeholders.
What is NOPAT?
NOPAT (Net Operating Profit After Tax) is operating profit after taxes, but before financing costs. NOPAT = EBIT × (1 - Tax Rate). NOPAT represents operating profit available to all capital providers (debt and equity) before financing costs. NOPAT is used in UFCF calculations and is important because it focuses on operating performance, excluding financing effects. NOPAT is similar to net income but excludes interest expense and includes the tax benefit of interest (tax shield), making it capital structure independent.