The basic formula for free cash flow (FCF) is simple:
Free Cash Flow = Cash Flow From Operations – Capital Expenditures
But there’s a lot more to understand!
This is the complete guide to understanding what they mean, the formulas for how to calculate them, and examples.
We walk through a situation where analyzing free cash flow and FCF growth would be misleading.
Learn how to use the cash flow statement to untangle differences in the balance sheet and income statement.
An overview of the DCF approach to valuing companies with Free Cash Flow as an input.