FCFE Calculator - Free Cash Flow to Equity

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Choose which line item you want to start from. All three methods produce identical FCFE when inputs are consistent.
After-tax bottom-line profit attributable to equity holders. Can be negative.
Non-cash charges subtracted when calculating net income, so they are added back to convert earnings to cash.
Cash spent on property, plant, and equipment. Enter the gross amount; the calculator subtracts it from FCFE.
Current-period NWC minus prior-period NWC. A positive value (NWC increased) uses cash and reduces FCFE; a negative value (NWC decreased) releases cash and raises FCFE.
New debt issued minus scheduled debt repayments during the period. Positive means the company took on more debt (cash inflow to equity); negative means it repaid more than it borrowed.
Leave at 0 to skip. Enter the fully diluted share count to compute FCFE per share, which is the maximum supportable dividend per share.
Currency
Free Cash Flow to Equity (FCFE)Positive FCFE
$125,000,000

Cash available to equity holders after operations, reinvestment, and debt service

FCFE as % of Net Income104.2%
Reinvestment Rate34.5%
Cash Flow ProfileCash Generative - Strong distributable equity cash flow
Net Income120000000
D&A (add-back)35000000
CapEx (use)40000000
NWC Change (use)10000000
Net Borrowing20000000
FCFE$125,000,000

FCFE is positive at $125,000,000.

  • The company generated $125,000,000 in distributable equity cash flow this period, the maximum amount available for dividends or buybacks without drawing down the balance sheet.
  • FCFE exceeds net income by 4.2%, which often reflects net borrowing supplementing equity cash flows or large non-cash charges relative to capex.
  • A reinvestment rate of 34.5% is moderate. As capital intensity eases, FCFE should expand.

Next stepCompare FCFE against dividends paid and buybacks to assess payout sustainability, then discount projected FCFE at the cost of equity (CAPM or DDM) to derive a per-share intrinsic value.

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