Unlevered Free Cash Flow Calculator. A business or asset that generates more cash than it invests provides a positive fcf that may be used to pay interest or retire debt (service debt holders), or to pay dividends or buy back stock (service equity holders). The free cash flow yield measures the amount of cash generated from the core operations of a company relative to its valuation.
It's the amount of cash a business has after it has met its financial obligations. Free cash flow to equity (fcfe) and free cash flow to the firm, (fcff) fcfe: In some contexts, this is the reality:
If not, the intrinsic value is not worth much because the company will be defunct.
Important therefore is the definition of the free cash flows. The irr is equal to the discount rate which leads to a zero net present value (npv) of those cash flows. Unlevered free cash flow is generated by the enterprise so its present value, like an ebitda multiple, will give you the enterprise value. Levered free cash flow (lfcf) is the money left over after all a company's bills are paid.
