Free Cash Flow to Firm (FCFF) is the cash that a company makes from its main activities after paying for all its expenses and investments. It shows how much money is left for the people who provide money to the company, such as lenders and shareholders. It can help measure how well a company is doing and how much it is worth.
The formula for FCFF is:
FCFF = Free Cash Flow + Interest Expense * (1 - Effective Tax Rate / 100)
Where:
- Free Cash Flow is CF045,
cf_free_cash_flow
- Interest Expense is IS014,
is_int_expense
- Effective Tax Rate is R0033,
eff_tax_rate