FCFF - Free Cashflow to Firm

     

  • FCFF: Free Cashflow to Firm
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  • FREE: After paying all the Expenses, Capital Expenditures left over to the company to pay the amount FREELY
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    FCFE - Free Cashflow to Equity

     

     

  • FCFE: Represents to Free Cashflow to Equity
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  • Amount left to Equity Holders After clearing payments to DEBT
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    FCFE - Free Cashflow to Equity

     

  • It is also one of the DISCOUNTED CASHFLOW(DCF) approach which is used to evaluate the FAIR PRICE of stock
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  • In FCFE Calculation Changes in NET BORROWINGS also considered along with OPERATING AND INVESTMENT activiteis
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