Easily calculate Levered Free Cash Flow (LFCF) to assess a company's financial health. This crucial metric shows cash available to equity holders after all operating expenses and debt obligations. Perfect for investors and analysts to evaluate equity valuation, dividend capacity, and potential share repurchases. Input key financial figures for instant, accurate results.
Formula:
The Levered Free Cash Flow (LFCF) represents the cash flow available to equity holders after all operating expenses and debt obligations are paid. It is a critical metric for equity valuation.
The formula for LFCF used in this calculator is:
LFCF = Operating Cash Flow (OCF) - Capital Expenditures (CapEx) - Principal Debt Repayments (PDR)
- Operating Cash Flow (OCF): The cash generated from a company's normal business operations before non-operating income, expenses, or debt financing.
- Capital Expenditures (CapEx): Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.
- Principal Debt Repayments (PDR): The portion of debt repayments that reduces the outstanding principal amount of debt, excluding interest payments.