| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 3,897,528,573 visitors served. |
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Free Cash Flow to Equity |
Also found in: Acronyms | 0.01 sec. |
|
|
Free Cash Flow to Equity The cash that a company has on hand after all debt service and expenses have been paid and reinvestment has been made. The free cash flow to equity is calculated thusly: FCFE = Net income + newly borrowed debt - capital expenditures - change in net working capital - debt service. FCFE is a measure of a company's value and is considered an alternative to the dividend discount model. Free Cash Flow to Equity (FCFE) What Does Free Cash Flow to Equity (FCFE) Mean? This is a measure of how much cash can be paid to a company's equity shareholders after accounting for all expenses, reinvestment, and debt repayment. It is calculated as follows: FCFE = Net Income - Net - Change in Net Working Capital + New Debt - Debt Repayment Investopedia explains Free Cash Flow to Equity (FCFE) FCFE is one method analysts use to determine the value of a company. FCFE valuation gained popularity as the usefulness of the dividend discount model became increasingly questionable. Related Terms: Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
|
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup |
|---|