Finance

Instant, private, and free

Free Cash Flow to Equity Calculator.

Calculate FCFE from earnings, investment, working capital, and borrowing inputs.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Net income

Depreciation

Capital expenditures

Increase in net working capital

Net borrowing

Free cash flow to equity

$0.00

FAQs

How does the free cash flow to equity calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

Use Cases

Equity Valuation

Use FCFE to discount expected future cash flows to equity holders for stock valuation.

Example: Estimate the intrinsic value of a company's stock by projecting FCFE and applying a cost of equity.

Financial Health Check

Assess whether a company can sustain dividends or share buybacks.

Example: Compare FCFE to dividend payments to see if dividends are covered.

Frequently Asked Questions

What is FCFE and why is it important?: Free Cash Flow to Equity (FCFE) is the cash available to common shareholders after reinvestment and debt payments. It's used in equity valuation to estimate the value of a company's stock.
How is FCFE calculated?: FCFE = Net Income + Depreciation & Amortization - Capital Expenditures - Change in Working Capital + Net Borrowing. This calculator simplifies the process by letting you input these components.
What does a negative FCFE indicate?: A negative FCFE means the company is not generating enough cash to cover its reinvestment and debt obligations, which may signal financial stress or heavy growth investment.

Tips & Common Mistakes

Tips

Ensure all inputs are in the same currency and period (e.g., annual or quarterly).
Use consistent accounting periods for net income and other figures.
Double-check that net borrowing includes both new debt issued and debt repayments.
For growth companies, FCFE may be negative initially; consider multi-year projections.

Common Mistakes to Avoid

Forgetting to include changes in working capital, which can significantly affect FCFE.
Using net income instead of operating cash flow as a starting point.
Mixing up net borrowing with total debt, ignoring repayments.

Last updated: August 13, 2026

Use Cases

Equity Valuation

Use FCFE to discount expected future cash flows to equity holders for stock valuation.

Example: Estimate the intrinsic value of a company's stock by projecting FCFE and applying a cost of equity.

Financial Health Check

Assess whether a company can sustain dividends or share buybacks.

Example: Compare FCFE to dividend payments to see if dividends are covered.

Frequently Asked Questions

What is FCFE and why is it important?

Free Cash Flow to Equity (FCFE) is the cash available to common shareholders after reinvestment and debt payments. It's used in equity valuation to estimate the value of a company's stock.

How is FCFE calculated?

FCFE = Net Income + Depreciation & Amortization - Capital Expenditures - Change in Working Capital + Net Borrowing. This calculator simplifies the process by letting you input these components.

What does a negative FCFE indicate?

A negative FCFE means the company is not generating enough cash to cover its reinvestment and debt obligations, which may signal financial stress or heavy growth investment.

Tips & Common Mistakes

Tips

Ensure all inputs are in the same currency and period (e.g., annual or quarterly).
Use consistent accounting periods for net income and other figures.
Double-check that net borrowing includes both new debt issued and debt repayments.
For growth companies, FCFE may be negative initially; consider multi-year projections.

Common Mistakes to Avoid

Forgetting to include changes in working capital, which can significantly affect FCFE.
Using net income instead of operating cash flow as a starting point.
Mixing up net borrowing with total debt, ignoring repayments.

Finance

Instant, private, and free

Free Cash Flow to Equity Calculator.

Calculate FCFE from earnings, investment, working capital, and borrowing inputs.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Net income

Depreciation

Capital expenditures

Increase in net working capital

Net borrowing

Free cash flow to equity

$0.00

FAQs

How does the free cash flow to equity calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

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Use Cases

Equity Valuation

Use FCFE to discount expected future cash flows to equity holders for stock valuation.

Example: Estimate the intrinsic value of a company's stock by projecting FCFE and applying a cost of equity.

Financial Health Check

Assess whether a company can sustain dividends or share buybacks.

Example: Compare FCFE to dividend payments to see if dividends are covered.

Frequently Asked Questions

What is FCFE and why is it important?: Free Cash Flow to Equity (FCFE) is the cash available to common shareholders after reinvestment and debt payments. It's used in equity valuation to estimate the value of a company's stock.
How is FCFE calculated?: FCFE = Net Income + Depreciation & Amortization - Capital Expenditures - Change in Working Capital + Net Borrowing. This calculator simplifies the process by letting you input these components.
What does a negative FCFE indicate?: A negative FCFE means the company is not generating enough cash to cover its reinvestment and debt obligations, which may signal financial stress or heavy growth investment.

Tips & Common Mistakes

Tips

Ensure all inputs are in the same currency and period (e.g., annual or quarterly).
Use consistent accounting periods for net income and other figures.
Double-check that net borrowing includes both new debt issued and debt repayments.
For growth companies, FCFE may be negative initially; consider multi-year projections.

Common Mistakes to Avoid

Forgetting to include changes in working capital, which can significantly affect FCFE.
Using net income instead of operating cash flow as a starting point.
Mixing up net borrowing with total debt, ignoring repayments.

Last updated: August 13, 2026