Free Cash Flow Definition & Application Wiki

Free Cash Flow Definition & Application Wiki

Last Updated by WikiWealth

Free Cash Flow Margin Data

Short Definition

FCFE = Free Cash Flow to the Firm. Free cash flow is the cash available to investors. It is generated by the operations of the business. An increase in free cash flow leads to an increase in the value of the business.

In corporate finance, free cash flow (FCF) is a cash flow available for distribution among all the security holders of a company. They include equity holders, debt holders, preferred stock holders, convertibles holders, and so on.

Long Definition

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Source: http://en.wikipedia.org/wiki/Free_cash_flow