Free Cash Flow to Equity
Free Cash Flow to Equity (FCFE) is the cash flow available to a company’s equity holders after operating expenses, taxes, capital expenditures, changes in working capital, and net debt repayments or issuances.
Example: An analyst projects FCFE for a consumer goods company by starting with net income, adding back non-cash charges, subtracting planned capital expenditures and changes in working capital, and adding net debt issued.
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