Free Cash Flow to Equity Formula

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Free Cash Flow to Equity (FCFE) is the amount of cash a business generates that is available to be potentially distributed to shareholders. Check FAQs
Free Cash Flow to Equity=Cash from Operating Activities-CAPEX+Net Debt Issued
Free Cash Flow to Equity - Free Cash Flow to Equity?Cash from Operating Activities - Cash from Operating Activities?CAPEX - Net Capital Expenditures?Net Debt Issued - Net Debt Issued?

Free Cash Flow to Equity Example

With values
With units
Only example

Here is how the Free Cash Flow to Equity equation looks like with Values.

Here is how the Free Cash Flow to Equity equation looks like with Units.

Here is how the Free Cash Flow to Equity equation looks like.

24500Edit=25000Edit-2000Edit+1500Edit
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Free Cash Flow to Equity Solution

Follow our step by step solution on how to calculate Free Cash Flow to Equity?

FIRST Step Consider the formula
Free Cash Flow to Equity=Cash from Operating Activities-CAPEX+Net Debt Issued
Next Step Substitute values of Variables
Free Cash Flow to Equity=25000-2000+1500
Next Step Prepare to Evaluate
Free Cash Flow to Equity=25000-2000+1500
LAST Step Evaluate
Free Cash Flow to Equity=24500

Free Cash Flow to Equity Formula Elements

Variables
Free Cash Flow to Equity
Free Cash Flow to Equity (FCFE) is the amount of cash a business generates that is available to be potentially distributed to shareholders.
Symbol: Free Cash Flow to Equity
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Cash from Operating Activities
Cash from Operating Activities represents the amount of cash a company generates (or consumes) from carrying out its operating activities over a particular time.
Symbol: Cash from Operating Activities
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Net Capital Expenditures
Net Capital Expenditures are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.
Symbol: CAPEX
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Net Debt Issued
Net Debt Issued shows how much cash would remain if all debts were paid off and if a company has enough liquidity to meet its debt obligations.
Symbol: Net Debt Issued
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.

Other formulas in Cash Flow Ratio category

​Go Free Cash Flow to Firm using Working Capital Investment
FCFF=NOPAT+D & A-CAPEX-CNWC
​Go Free Cash Flow
FCF=CFO-CAPEX
​Go Free Cash Flow to Firm
FCFF=CFO+(Int(1-tax))-CAPEX

How to Evaluate Free Cash Flow to Equity?

Free Cash Flow to Equity evaluator uses Free Cash Flow to Equity = Cash from Operating Activities-Net Capital Expenditures+Net Debt Issued to evaluate the Free Cash Flow to Equity, Free Cash Flow to Equity is the amount of cash a business generates that is available to be potentially distributed to shareholders. It is calculated as Cash from Operations less Capital Expenditures plus net debt issued. Free Cash Flow to Equity is denoted by Free Cash Flow to Equity symbol.

How to evaluate Free Cash Flow to Equity using this online evaluator? To use this online evaluator for Free Cash Flow to Equity, enter Cash from Operating Activities (Cash from Operating Activities), Net Capital Expenditures (CAPEX) & Net Debt Issued (Net Debt Issued) and hit the calculate button.

FAQs on Free Cash Flow to Equity

What is the formula to find Free Cash Flow to Equity?
The formula of Free Cash Flow to Equity is expressed as Free Cash Flow to Equity = Cash from Operating Activities-Net Capital Expenditures+Net Debt Issued. Here is an example- 24500 = 25000-2000+1500.
How to calculate Free Cash Flow to Equity?
With Cash from Operating Activities (Cash from Operating Activities), Net Capital Expenditures (CAPEX) & Net Debt Issued (Net Debt Issued) we can find Free Cash Flow to Equity using the formula - Free Cash Flow to Equity = Cash from Operating Activities-Net Capital Expenditures+Net Debt Issued.
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