How Much Cash Does the Whole Business Generate?

FCFF is the cash available to ALL capital providers — equity and debt holders combined. It is what you discount at WACC to get enterprise value.

FCFFEnterprise ValueNOPATReinvestment

Live Result

185

ƒ: EBIT * (1 - tax) + DA - capex - delta_wcraw: 185.000

ƒ(x)

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

EBIT

Earnings Before Interest and Tax

EBIT = 300

tax% as decimal

Tax rate (decimal)

tax = 0.25

Depreciation & Amortisation

DA = 60

capex

Capital expenditures

capex = 80

delta_wc

Change in working capital

delta_wc = 20

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

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Learn: How Much Cash Does the Whole Business Generate?

Estimating Cash Flows · Educational Guide

The Core Idea

Think of FCFF as the cash the business generates for everyone who has funded it — both lenders and owners. It's the purest measure of business performance because it ignores how the company is financed.

How It Works

FCFF = NOPAT − Net Reinvestment. NOPAT (after-tax operating profit) is what the business earns for all providers. We subtract what must be reinvested (capex minus D&A plus working capital increases) to get available cash.

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Real-World Example: EBIT = $300M, tax 25% → NOPAT = $225M. Add D&A $60M, subtract capex $80M, subtract ΔWC $20M: FCFF = $225M + $60M − $80M − $20M = $185M. Discount at WACC to get enterprise value.

How Much Cash Does the Whole Business Generate?

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