FINANCIAL CALCULATORS
Unlevered Free Cash Flow Calculator
Calculate unlevered free cash flow for DCF valuation purposes.
What is the Unlevered Free Cash Flow Calculator & How does it work?
Unlevered Free Cash Flow (UFCF) is a financial metric that represents the cash available to all investors in a company, including both debt and equity holders. It is calculated by subtracting capital expenditures from operating cash flow.
The formula for UFCF is:
The formula for UFCF is:
UFCF = Operating Cash Flow – Capital Expenditures
Operating Cash Flow = Net Income + Depreciation & Amortization – Changes in Working Capital
Capital Expenditures = Amount spent on long-term assets
Capital Expenditures = Amount spent on long-term assets
Parameters
Unlevered Free Cash Flow—
Frequently Asked Questions
What is Unlevered Free Cash Flow?
Unlevered Free Cash Flow (UFCF) is the cash available to all investors in a company after accounting for capital expenditures.
How do I calculate Operating Cash Flow?
Operating Cash Flow is calculated as Net Income plus Depreciation & Amortization minus Changes in Working Capital.
What are Capital Expenditures?
Capital Expenditures are the funds spent on acquiring or maintaining long-term assets, such as property, plant, and equipment.
Why is UFCF important for investors?
UFCF is crucial because it shows how much cash a company generates before paying interest to debt holders, making it useful for assessing the financial health of the business.
Can I use this calculator for personal finances?
This calculator is specifically designed for businesses. For personal finances, consider using other tools tailored to individual financial planning.
How does UFCF differ from Levered Free Cash Flow (LFCF)?
UFCF excludes interest payments on debt, whereas LFCF includes them, making UFCF a more comprehensive measure of cash available to all investors.
What if my company has negative net income?
Even with negative net income, you can still calculate UFCF by adding back depreciation and amortization and subtracting changes in working capital from the net income figure.
Results are for informational purposes only and do not constitute professional advice.