FCFF Calculator - Free Cash Flow to Firm

Your details

Choose the income statement or cash flow line you know. All four methods produce the same FCFF when inputs are consistent.
Earnings Before Interest and Taxes. This is operating profit before financing costs and income taxes.
USD
Annual D&A charge. Added back because it is a non-cash expense that reduces accounting profit but not cash.
USD
Effective income tax rate as a percentage, used to compute NOPAT and the interest tax shield.
%
Spending on fixed assets such as property, plant, and equipment. This is a cash outflow that reduces FCFF.
USD
Change in working capital (current assets minus current liabilities, excluding cash and short-term debt). A positive number means more cash is tied up in operations - enter a negative value if working capital shrank.
USD
Weighted Average Cost of Capital. The rate used to discount future free cash flows back to present value.
%
Perpetual growth rate for the Gordon Growth terminal value model. Must be less than WACC. Typically 2-4% for mature companies.
%
Currency
Free Cash Flow to FirmPositive FCFF
13,000,000USD

Cash available to all capital providers after reinvestment needs

NOPAT15,000,000USD
Total Reinvestment2,000,000USD
Implied Enterprise Value185,714,286USD
Reinvestment Rate0.1%
NOPAT15,000,000
Net Reinvestment2,000,000
FCFF13,000,000

FCFF is 13,000,000 USD - cash available to all capital providers.

  • The firm generates 13,000,000 USD in free cash flow after covering taxes, capital spending, and working capital needs.
  • Reinvestment consumes 13% of NOPAT, leaving the rest as distributable free cash flow - consistent with a profitable, capital-light business.
  • At a 10% WACC and 3% perpetual growth rate, the Gordon Growth model implies an enterprise value of 185,714,286 USD.

Next stepFor a proper DCF valuation, project FCFF over 5-10 years with explicit growth assumptions, then add a terminal value - this single-period perpetuity is a simplified anchor.

 = Powered by OnlyCalculators