Free cash flow to equity
The cash flow left to shareholders after settling with lenders: interest, repayments and new borrowing.
Formula
FCFE = \text{Operating cash flow} - \text{Capital expenditure} + \text{Net debt raised}Net debt raised is borrowing drawn less borrowing repaid over the same period, taken from the cash flow statement.
How to read the number
The upper bound of what can be paid out as dividends without raising debt or cutting investment.
When the metric lies
Taking on debt temporarily inflates this flow: the measure rises while the durability of future payouts falls.
Where it is used
The metric is calculated across every security in the catalogue and appears on the instrument card, in the multiples table and in the screener.
Also known as: levered free cash flow