Free Cash Flow Definition & Application Wiki

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Free Cash Flow Margin Data

Short Definition

FCFE = Free Cash Flow to the Firm. Free cash flow is the cash available to investors. It is generated by the operations of the business. An increase in free cash flow leads to an increase in the value of the business.

In corporate finance, free cash flow (FCF) is a cash flow available for distribution among all the security holders of a company. They include equity holders, debt holders, preferred stock holders, convertibles holders, and so on.

Long Definition

See Dictionary Terms

• Weight Average Cost of Capital (WACC)
• Value Investing
• Terminal Value
• Shares Outstanding
• Risk Free Rate
• Present Value Factor
• Long Term Growth Rate
• Fair Value Per Share
• Free Cash Flow
• Free Cash Flow to the Equity (FCFE)
• Free Cash Flow to the Firm (FCFF)
• Fair Value
• Equity Value

See Academic Resources

• Fair Values
• Potential Returns
• WACC Discount Rates
• Adv Cash Flow Template
• Basic Cash Flow Model
• Warren Buffett Model
• 1 Stage FCFF
• 2 Stage FCFF
• 1 Stage FCFE
• 2 Stage FCFE
• 3 Stage FCFE
• FCFF vs FCFE Valuation
• FCFF with Negative Earnings
• FCFE with Capitalized R&D
• FCFF with Negative Earnings
• FCFF and EVA
• FCFE with Option to Capitalize
• Reconcile FCFE & Dividend Value

Source: http://en.wikipedia.org/wiki/Free_cash_flow