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Glossary

Free Cash Flow

Also: FCF

Essential — core valuation theory

What it measures

Cash available to all capital providers before financing decisions.

Formula

OCF - CapEx

Benchmark

Positive + growing = strong

Related metrics

OCFFCFEFCF YieldCapEx / Revenue

Source

McKinsey, Valuation (7th ed.) ch. 7

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Free Cash Flow to Equity