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What is 'Free Cash Flow To Equity  FCFE'
This is a measure of how much cash can be paid to the equity shareholders of the company after all expenses, reinvestment and debt repayment.
Calculated as: FCFE = Net Income  Net Capital Expenditure  Change in Net Working Capital + New Debt  Debt Repayment
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BREAKING DOWN 'Free Cash Flow To Equity  FCFE'
FCFE is often used by analysts in an attempt to determine the value of a company.
This alternative method of valuation gained popularity as the dividend discount model's usefulness became increasingly questionable.
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RELATED FAQS

What's the difference between free cash flow to equity and accounting profits?
Understand the difference between Free Cash Flow to Equity (FCFE) and Accounting Profit and their relevance to enterprises, ... Read Answer >> 
How can you calculate free cash flow to equity (FCFE) in Excel?
Learn about Free Cash Flow (FCF) and Free Cash Flow to Equity (FCFE) calculations, as well as how businesses may calculate ... Read Answer >> 
What does free cash flow to equity (FCFE) really tell an analyst?
Discover the calculation analysts prefer using over the dividend discount model to assess the value of a business, and how ... Read Answer >> 
What are analysts looking for when they use free cash flow to equity (FCFE)?
Learn how free cash flow to equity helps analysts to advise their corporate and individual clients effectively about buying ... Read Answer >> 
Besides free cash flow to equity (FCFE), what are other metrics for estimating a ...
Learn about metrics used to calculate a company's value, including capital expenditure, revenue expenditure, pricetoearnings ... Read Answer >> 
Why would you look at a company's net debt rather than its gross debt?
Learn the difference between net debt and gross debt, how to calculate debt using a company's financial statements and why ... Read Answer >>