A

Glossary

Free Cash Flow to Equity

Also: FCFE

Essential — core valuation theory

What it measures

FCF after debt repayments and new borrowings. What's left specifically for equity holders.

Formula

FCF - Net Debt Repayment + Net Borrowing

Related metrics

FCFFCF per ShareDividend Payout Ratio

Source

Damodaran, Investment Valuation (2012), ch. 14

Previous

Free Cash Flow

Next

Goodwill / Total Assets