Cash Flow Analysis

Free Cash Flow to Firm

Definition

What is Free Cash Flow to Firm?

Cash flow available to all capital providers before debt payments.

Example in practice

An analyst discounts FCFF using the weighted average cost of capital.

Keep learning

Cash generated or used by a company's core operations.

Cash used for or received from buying and selling long-term assets and investments.

Cash flows arising from debt, equity, dividends, and other financing transactions.

The price at which an asset could trade in the market at a given time.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.