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FCFF & Free Cash Flow

The number that drives every DCF.

Free Cash Flow to the Firm is derived rigorously from the operating model — not estimated by formula shortcuts. EBIT flows to NOPAT, net of the tax shield. D&A adds back. Changes in net working capital and capex net out. The result is an auditable, driver-linked FCFF stream ready for discounting.

What It Does

  • NOPAT: EBIT × (1 – effective tax rate)
  • D&A add-back from PP&E roll-forward
  • NWC change: linked to DSO / DPO / DIO assumptions
  • Capex: split maintenance vs. growth, net of disposals
  • Leases: IFRS 16 / ASC 842 operating lease optionality

Key Outputs

5–10 year FCFF projection
Unlevered free cash flow bridge
Capex intensity ratio

This layer is live inside ModelForge — no setup required.

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