Words / U / Business

unlevered free cash flow

noun

C2CEFR level
90/100Rarity: very rare
TechnicalRegister

The cash a business generates before any financing costs, available to all providers of capital and used as the basis for a DCF valuation.

We discount unlevered free cash flow at the WACC to arrive at enterprise value.

Similar: free cash flow to firm, FCFF

Topic: Corporate finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate finance