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What is FCFF?

Free cash flow to the firm: EBIT x (1 - tax) + D&A - CapEx - increase in net working capital. Cash to all capital providers, pre-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.