Enterprise Value / Free Cash Flow (EV/FCF) Calculator

What is Enterprise Value / Free Cash Flow (EV/FCF)? EV/FCF is a valuation multiple that compares the value of a firm’s operating assets (Enterprise Value) to the free cash flow...

Enterprise Value / Free Cash Flow (EV/FCF) Calculator

Calculate the EV/FCF multiple using Enterprise Value (EV) and trailing free cash flow. Optionally derive EV from market cap, debt, and cash for a cleaner capital-structure-neutral comparison.

EV ComponentsDirect EV

Use EV Components for the standard definition. Choose Direct EV if you already have Enterprise Value from a data provider.

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Enterprise value is the total value of the business to all capital providers. A common definition is: EV = Market Cap + Total Debt + Minority Interest + Preferred Equity − Cash & Cash Equivalents.

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Market value of equity (share price × shares outstanding). Use the same currency and time period context as your free cash flow input.

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Interest-bearing debt (short-term + long-term). Use gross debt for EV.

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Cash and short-term equivalents; subtracted from EV.

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Include only if the company consolidates subsidiaries where it does not own 100%.

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Preferred stock at market value, if applicable.

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Trailing twelve-month free cash flow. For EV-based multiples, use an unlevered definition when possible (often called FCFF) to keep the numerator and denominator consistent. If FCF is ≤ 0, EV/FCF is typically not meaningful.

Scenarios
Explore typical EV/FCF profiles and edge cases. Use peers, growth, leverage, and FCF quality to interpret the multiple.
Value (~10x)Typical (~15x)Rich (~30x)Components ExampleNegative FCFEV ≤ 0 (net cash edge case)

Results

  • EV/FCF Multiple— x
  • EV/FCF Multiple—
  • FCF Yield on EV (can be negative)— %
  • Enterprise Value (EV)$

Enter your inputs above to calculate the results.

What is Enterprise Value / Free Cash Flow (EV/FCF)?

EV/FCF is a valuation multiple that compares the value of a firm’s operating assets (Enterprise Value) to the free cash flow available to all capital providers (typically FCFF/unlevered FCF).

It matters because it links price to value creation: companies that convert operating performance into sustainable free cash flow can justify higher EV/FCF, while weaker cash conversion or heavy reinvestment usually compresses the multiple.

For clean comparisons, keep numerator/denominator consistent: EV is capital-structure neutral, so the cash flow concept should be to the firm (FCFF) rather than purely to equity (FCFE).

Formula

EV = Market Cap + Total Debt + Preferred Equity + Minority Interest-Cash & Cash Equivalents
EV / FCF = EV / FCF
FCF Yield on EV(%) = FCF / EV × 100

Example

Assume: Market Cap = $12,000,000,000; Total Debt = $4,000,000,000; Cash & Equivalents = $1,000,000,000; Minority Interest = $0; Preferred Equity = $0; Free Cash Flow (TTM) = $1,000,000,000.

Compute enterprise value:

EV = 12,000,000,000 + 4,000,000,000 + 0 + 0-1,000,000,000 = 15,000,000,000
Compute EV / FCF multiple: EV / FCF = 15,000,000,000 / 1,000,000,000 = 15x
Compute FCF yield on EV: FCF Yield on EV(%) = 1,000,000,000 / 15,000,000,000 × 100 = 6.67%

Frequently Asked Questions

Should I use TTM free cash flow or forward free cash flow for EV/FCF?

Use TTM for a clean “what the business generated in the last 12 months” snapshot (matches the field in this calculator). Use forward FCF only if you have a credible forecast—then compare forward-to-forward across peers, not forward-to-TTM.

Why is my EV/FCF negative (or showing a weird number)?

EV/FCF turns negative when free cash flow is negative. It can also blow up when FCF is very close to zero—small denominator, huge multiple. In those cases, the “FCF Yield on EV” line is usually easier to interpret.

Do I need to include cash, debt, minority interest, and preferred equity in Enterprise Value?

Yes if you’re building EV from components. EV is meant to reflect the value of the whole business to all capital providers, so you add financing claims (debt, preferred equity, minority interest) and subtract cash & cash equivalents.

Is it okay to divide EV by “free cash flow to equity” (levered FCF)?

Not for clean comparisons. EV is a company-wide (capital-structure-neutral) value, so the most consistent denominator is unlevered free cash flow (cash flow available to all providers). If your FCF is equity-only, use an equity-only multiple (like P/FCF) instead.

Sources & Methodology