Calculate Free Cash Flow to Equity (FCFE) for up to 5 years to assess cash available to shareholders
Enter financial data for up to 5 years to calculate Free Cash Flow to Equity (FCFE). All monetary values should be in Ghanaian Cedi (GHS). Example: Use data for Access Bank Ghana (174 million shares).
FCFE Formula
FCFE = Net Income - Net Capex - Change in Working Capital + Net Borrowing
Where Net Income is profit after taxes, Net Capex is capital expenditures minus asset sales, Change in Working Capital is the year-over-year change in current assets minus liabilities, and Net Borrowing is new debt minus repayments.
Free Cash Flow to Equity (FCFE) measures the cash available to shareholders after all expenses, reinvestments, and debt obligations are met. It’s a key metric for valuing stocks using Discounted Cash Flow (DCF) models or assessing dividend potential.
The company generates surplus cash for shareholders, potentially supporting dividends or stock buybacks.
The company may be reinvesting heavily or facing cash flow challenges, limiting shareholder payouts.
Input the profit after taxes from the income statement for each year (e.g., from Yahoo Finance or gse.com.gh).
Provide capital expenditures minus asset sales from the cash flow statement.
Input the year-over-year change in current assets minus liabilities.
Provide new debt minus repayments from the cash flow statement.
Click “Calculate” to compute FCFE for each year. Use results for DCF valuation or divide by shares outstanding to get FCFE per share.
To calculate Free Cash Flow to Equity (FCFE), you need accurate financial data. Here’s how to find the required information for global and Ghanaian companies:
Find in the income statement:
Calculate as capital expenditures minus proceeds from asset sales, found in the cash flow statement under “Investing Activities.”
Calculate as the year-over-year change in current assets minus current liabilities, found in the balance sheet or cash flow statement.
Calculate as new debt issuances minus debt repayments, found in the cash flow statement under “Financing Activities.”
Examples: