FCFE Calculator

Calculate Free Cash Flow to Equity (FCFE)





Formula

The formula to calculate the Free Cash Flow to Equity (FCFE) is:

\[ \text{FCFE} = \text{CO} - \text{CE} + \text{D} \]

Where:

What is Free Cash Flow to Equity (FCFE)?

Free Cash Flow to Equity (FCFE) is the total cash available to equity shareholders after all expenses, reinvestment, and debt repayment. It represents the cash that could be distributed to shareholders as dividends or used for share buybacks. FCFE is an important measure for investors as it indicates the financial health and profitability of a company.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Free Cash Flow to Equity:

\[ \text{FCFE} = 500,000 - 200,000 + 50,000 = 350,000 \text{ dollars} \]

The Free Cash Flow to Equity (FCFE) is $350,000.