Free Cash Flow to the Firm (FCFF)

The cash flow available to the company’s suppliers of capital (shareholders and creditors) after all operating expenses have been paid and necessary investments in working capital and fixed capital have been made.

FCFF = CFOFCInv + Int(1-T)

FCFF = Net Income + NCCWCInvFCInv + Int(1-T)

See also: FCFE

Also Known As:
Free cash flow
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