1. Home
  2. Glossary
  3. Free cash flow

Free cash flow

German: Free Cashflow

The cash a company has left after all investment – operating cash flow minus capex.

Free cash flow funds dividends, buybacks, debt repayment or acquisitions. Many investors consider it more telling than net income, because it’s harder to shape with accounting. It’s the basis of DCF valuation and the free cash flow yield.