Defining Free Cash Flow
Interactive

Defining Free Cash Flow

Intuition Publishing
Updated Sep 23, 2020

Free cash flow (FCF) is a measures how much cash is available to suppliers of capital to the firm after all taxes and needs for reinvestment have been met. By discounting free cash flow, a company's overall value and the value of its equity can be estimated. Here we take a look at free cash flow to the firm and to equity holders.