Free Cash Flow To Equity - FCFE
Calculated as: FCFE = Net Income - Net Capital Expenditure - Change in Net Working Capital + New Debt - Debt Repayment
FCFE is often used by analysts in an attempt to determine the value of a company.
This alternative method of valuation gained popularity as the dividend discount model's usefulness became increasingly questionable.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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