FCFF vs. FCFE vs. FCF
Hey guys,
The difference between FCFF and FCFE is obvious but very often we see just FCF - what does it mean and how does it differ from either FCFF and FCFE? Many thanks!
Trending Content - Investment Banking Forum
| +267 | Why UBS Is the Worst Place to Start Your IB Career | 40 | 2d |
| +219 | UBS 2nd Year Analyst Q&A (2026) | 41 | 1d |
| +102 | What's your craziest "hardo" story? | 18 | 1h |
| +72 | UBS IB 26Q2 a Disaster! Advisory Revenue Down 23%, Capital MarketsDown 5% | 11 | 1h |
| +53 | Wolf of Wall Street vs. Reality: Anyone else feel scammed by the movies? | 19 | 15h |
| +50 | Suspended for a Year | 21 | 20h |
| +49 | Elite Boutique interview questions | 17 | 2d |
| +37 | so confused about 28 SA timeline | 30 | 10h |
| +34 | Lincoln International Return Offers | 8 | 29m |
| +33 | Rate my non-target resume | 19 | 4h |
Career Resources
FCFE = FCFF + Net borrowing - Interest*(1-t)
and solely FCF?
I have this in example just mentioned FCF and I don't get it why there are added back tax savings and tax shield to the EV/Equity. Normally we are not doing that right?
FCF would either refer to FCFE or FCFE, there isn't a 3rd FCF (Maybe someone would say statement of cash flows is a 3rd FCF, but I haven't seen that). In terms of the tax savings, the only thing I could imagine is if you had a NOL somewhere in that that wasn't in the FCF?
Since this result gives you enterprise value (not equity value) when you sum the discounted cash flows and terminal value, you know this is FCFF. Another trick is to check the discount rate: If the question is using WACC, it's FCFF. If it's Re, then it's FCFE.
FCF is synonymous with FCFF. No difference.
FCFF is what you forecast in a standard DCF
Ea omnis eligendi quo voluptatem veniam reprehenderit quia repellendus. Sint totam dolorem laborum ex sit repudiandae sint fugiat. Accusamus sequi possimus quia at aut eum quae delectus.
Magnam qui ipsam sit laudantium velit. Assumenda totam rem sunt qui reprehenderit aliquam sit sit. Quia autem omnis maiores numquam rerum odio et quasi. Dolor repellendus voluptas fugit ipsum sit soluta dolores esse.
At quia quisquam reiciendis consequatur. Expedita eos minima enim. Aliquam velit et quaerat facilis quo. Rem ipsum mollitia dolorum rem ad. Consequatur doloremque harum sed aperiam voluptas iure. Reprehenderit hic est ipsam quia.
Totam minima beatae tenetur velit animi. Cum totam placeat consectetur blanditiis itaque beatae repellat. Deleniti et voluptatem et et omnis voluptatibus sed. Atque cupiditate aut voluptas esse aspernatur qui dolores ad. Quo et quae ad in ut. Animi sit neque itaque qui veritatis corporis voluptates.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...