Finance

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Free Cash Flow to Equity Calculator.

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

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Set your values

Results update as you type.

Free cash flow to equity: $90,000.00

Free cash flow to equity

$90,000.00

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.

Cite this calculator

Canonical URL: https://mathify.one/es/finance/free-cash-flow-to-equity

Cite as: Mathify. (2026). Free Cash Flow to Equity Calculator. https://mathify.one/es/finance/free-cash-flow-to-equity

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