This unlevered FCF template will show you how to compute the unlevered free cash flows with EBIT, tax, depreciation & amortization, change in NWC and Capex.
Below is a preview of the unlevered FCF template:
Enter your name and email in the form below and download the free template now!
Unlevered Free Cash Flow (also known as Free Cash Flow to the Firm or FCFF for short) is a theoretical cash flow figure for a business, assuming the company is completely debt free and thus has no interest expense. Unlevered Free Cash Flow is used in financial modeling to determine the enterprise value of a firm.
The formula for calculating unlevered FCF is:
Unlevered free cash flow = EBIT – Taxes + Depreciation & Amortization – Capital Expenditures – increases in non-cash working capital
Unlevered free cash flow is used to remove the impact of capital structure on a firm’s value and make companies more comparable. Its principal application is in valuation, where a discounted cash flow (DCF) model is built to determine the net present value (NPV) of a business. By using unlevered cash flow the enterprise value is determined, which can easily be compared to the enterprise value of another business.
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.