Terms Beginning With 'f'

Free Cash Flow to Equity (FCFE)

  • January 18, 2020
  • Team Kalkine

It refers to the amount of cash derived by the business that could be available for the equity shareholders. FCFE is computed after deducting capital expenditure from the cash from operations and adding net issued debt. It is utilised in the valuation of a company, where it enables to distinguish between Enterprise Value and Equity Value.

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