Discover how to calculate free cash flow (FCF) to evaluate financial health, assess company value, and make informed ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

A company's cash flow, both inflow and outflow, is the result of operating, investing and financing activities. Revenues and expenses from operations are only part of the cash flow calculation, which ...

If you are curious about what is free cash flow, you must know its types. There are two main types: free cash flow to the Firm and Free Cash Flow to Equity. FCFF or Free Cash Flow to the Firm FCFF, or ...

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

FCFE shows a company's money left after paying bills, essential for assessing financial health. To calculate FCFE: net income + depreciation - capex - working capital + net debt. Positive FCFE ...

A perpetuity in finance is a stream of payments or cash flows that is presumed to extend indefinitely into the future. Learn the importance of perpetuities, with the help of examples of investments. A ...

The cash flow statement reveals a lot about a business that you can't immediately find on the income statement or balance sheet. For example, many companies are profitable on the income statement, ...