Free Cash Flow to Firm Formula

Free cash flow to the company is the cash left over after a company has paid its operating expenses and capital expenditures.

To get FCFF from cash flow, multiply interest expense (1 - Tax Rate), add cash flow and then subtract the capital expenditures.

FCFF = Cash Flow From Operations + Interest Expense × (1 - Tax Rate) - CAPEX

Where,

FCFF - Free Cash Flow to Firm

CAPEX - Capital Expenditures, It is the capital used to fund operations in the long run. Capital expenditures can be found on a companys cash flow statement.