Back to DCF questions
📈 DCF
Easy
What is unlevered free cash flow and how do you calculate it?
Answer
Unlevered FCF (also called Free Cash Flow to the Firm) is the cash available to all capital providers — debt and equity holders — before any financing decisions. Formula: UFCF = EBIT × (1 − tax rate) + D&A − CapEx − ΔWorking Capital.
Continue reading the full answer
Plus the detailed banker explanation of what interviewers are really testing.
free cash flowFCF