Free Cash Flow to Equity (FCFE) Calculator

Enter operating cash flow, capital expenditures and net borrowing to get FCFE.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

This calculator computes free cash flow to equity, FCFE = operating cash flow − capital expenditures + net borrowing, which represents the cash left over after a company reinvests in its own operations and settles its net debt flows — the cash that could theoretically be paid out to shareholders as dividends or buybacks.

Equity research analysts use FCFE as the cash flow input in a dividend-discount or equity DCF valuation, discounting projected FCFE at the cost of equity to estimate what a company's shares are worth, which makes it a more direct measure of shareholder value than free cash flow to the firm.

Was this helpful?

Comments (0)

  • Be the first to comment.

Popular calculators

All Calculators