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Estimating Cash Flows🔵 Intermediate

How Much Cash Are Shareholders Actually Making From This Business?

How Much Cash Can Equity Holders Claim?

FCFE is what remains after paying debt obligations — the cash that belongs to shareholders. Discount at cost of equity to get equity value directly.

FCFEEquity ValueNet BorrowingDividend capacity

Live Result

$170

ƒ: net_income + DA - capex - delta_wc - debt_re…raw: 170.000

ƒ(x)

Use variable names from the panel above (e.g. FV, r, n) — or type numbers directly: 10000 / (1 + 0.08)^10

net_income

Net income after interest and taxes

net_income = 200

Depreciation & Amortisation

DA = 60

capex$

Capital expenditures

capex = 80

delta_wc

Change in working capital

delta_wc = 20

debt_repayment

Repayment of existing debt principal

debt_repayment = 30

new_debt

New debt issued during the period

new_debt = 40

💡 You can also enter values directly in the formula: 10000 / (1 + 0.08)^10

⬇ Export Calculation

Exports a plain .txt file with your expression, formula, all variable values, result, and educational notes — ready to paste into any report, Word doc, Notion, or Google Docs.

The exported file includes the formula in standard mathematical notation — you can paste it directly into Excel, Google Sheets, or back into FinanceSheep.

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Learn: How Much Cash Can Equity Holders Claim?

Estimating Cash Flows · Educational Guide

The Core Idea

After the business pays its running costs, taxes, and debt obligations, what's left for shareholders? That's FCFE — the cash shareholders can theoretically receive as dividends or buybacks.

How It Works

FCFE = Net Income + D&A − Capex − ΔWC + Net Borrowing. Net borrowing = new debt raised minus debt repaid. If you borrow $40M and repay $30M, net borrowing adds $10M to equity cash flow.

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Real-World Example: Net income $200M + D&A $60M − capex $80M − ΔWC $20M − debt repayment $30M + new debt $40M = $170M. Shareholders can receive up to $170M through dividends or buybacks.

How Much Cash Are Shareholders Actually Making From This Business?

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