DEFINITION of 'Unlevered Free Cash Flow  UFCF'
A company's cash flow before interest payments are taken into account. Unlevered free cash flow can be reported in a company's financial statements, and shows how much cash is on hand to pay for operations before other financial obligations are taken into account.
Unlevered Free Cash Flow = EBITDA  CAPEX  Working Capital  Taxes
The smaller the gap between unlevered cash flow and leveraged cash flow, the smaller amount of unobligated cash the company has on hand, and the company is more likely to run into problems if revenue streams dry up.
INVESTOPEDIA EXPLAINS 'Unlevered Free Cash Flow  UFCF'
A company that has a large amount of outstanding debt  one that is highly "leveraged"  is more likely to report unlevered free cash flow because it provides a rosier picture of the company's financial health. The figure shows how assets are performing in a vacuum, because it ignores the payments made for debt incurred to obtain those assets. Investors have to make sure to take into account debt obligations, since highly leveraged companies are at greater risk for bankruptcy.

Capital Expenditure (CAPEX)
Funds used by a company to acquire or upgrade physical assets ... 
Working Capital
This ratio indicates whether a company has enough short term ... 
Levered Free Cash Flow
The free cash flow that remains after a company has paid its ... 
Operating Cash Flow  OCF
In accounting, a measure of the amount of cash generated by a ... 
Earnings Before Interest, Taxes, ...
An indicator of a company's financial performance which is calculated ... 
Free Cash Flow  FCF
A measure of financial performance calculated as operating cash ...

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The difference between levered and unlevered free cash flow is expenses. Levered cash flow is the amount of cash a business ... Read Full Answer >> 
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Analysts and investors should utilize a company’s financial statements, stock information websites and any number of analysis ... Read Full Answer >> 
What does the Dividend Discount Model (DDM) show an investor about a company?
The dividend discount model, or DDM, is not designed to be used in forecasting any possible capital gains from increases ... Read Full Answer >> 
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The parametric method, also known as the variancecovariance method, is a risk management technique for calculating the value ... Read Full Answer >> 
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A variety of equity valuation metrics can be utilized to evaluate a company along with the debt to capital ratio to get a ... Read Full Answer >>

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