Unlevered Free Cash Flow Calculator
Calculate UFCF to measure cash available to equity and debt holders
Calculate Unlevered Free Cash Flow
Operating income before interest and tax expenses
Actual tax rate paid by the company (Income tax expense ÷ Income before tax)
Non-cash expenses added back to cash flow
Investment in fixed assets to expand or maintain business
Positive = cash inflow, Negative = cash outflow from operations
UFCF Calculation Results
Formula: UFCF = EBIT × (1 - ETR) + D&A - CapEx + ΔWC
NOPAT: $0 × (1 - 0%) = $0
UFCF Margin: 0.0% of EBIT
Cash Flow Analysis
Enter values to calculate
UFCF Component Analysis
Example: NVIDIA 2021
Input Data
EBIT: $4,532 million
Effective Tax Rate: 1.74%
D&A: $1,098 million
CapEx: $1,128 million
ΔWC: -$703 million
Calculation
NOPAT = $4,532 × (1 - 1.74%) = $4,453.14M
UFCF = $4,453.14 + $1,098 - $1,128 - $703
UFCF = $3,720.14 million
Key Insights
Available to All
Cash available to both equity and debt holders
DCF Valuation
Primary metric for enterprise valuation models
Debt-Neutral
Excludes financing decisions and interest payments
UFCF vs LFCF
Unlevered FCF
- • Starts with EBIT (NOPAT)
- • Available to all stakeholders
- • Used for enterprise valuation
Levered FCF
- • Starts with EBITDA
- • Net of debt payments
- • Available to equity only
Understanding Unlevered Free Cash Flow
What is Unlevered Free Cash Flow?
Unlevered Free Cash Flow (UFCF), also known as Free Cash Flow to Firm (FCFF), represents the cash available to all stakeholders—both equity holders and debt holders—after covering operating expenses, taxes, and necessary investments.
Why is UFCF Important?
- •Primary metric for DCF valuation models
- •Measures true operational cash generation
- •Independent of capital structure decisions
- •Shows debt repayment capability
UFCF Formula Breakdown
UFCF = EBIT × (1 - ETR) + D&A - CapEx + ΔWC
- EBIT × (1 - ETR): Net Operating Profit After Tax (NOPAT)
- D&A: Non-cash expenses added back
- CapEx: Investments in fixed assets
- ΔWC: Change in working capital requirements
Key Insight: UFCF excludes interest payments, making it useful for comparing companies with different capital structures.
Interpreting UFCF Results
Positive UFCF: Company generates cash from operations
Negative UFCF: Operations consume more cash than generated
UFCF Margin >15%: Excellent cash generation efficiency
Growing UFCF: Sustainable business model
Common Use Cases
- •Valuation: DCF analysis and enterprise value calculation
- •Investment decisions: Comparing companies across industries
- •Credit analysis: Assessing debt repayment capacity
- •Performance tracking: Measuring operational efficiency
- •M&A analysis: Determining acquisition targets