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What is FCFE?

Free cash flow to equity: net income + D&A - CapEx - increase in net working capital + net borrowing. Cash available to equity after debt (Damodaran, 2012).

Where you will use it: this term comes up in the Entrepreneurial Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Entrepreneurial Finance course by Devon Coombs, CPA, MBA.