Unlevered Free Cash Flow is cash flow from operations minus capital expenditures and changes in working capital, not taking into account interest or debt.

Unlevered free cash flow is operating cash flow minus capital expenses, excluding interest and debt.

Does unlevered mean no debt? Yes, unlevered means the company or investment has no debt.

Why does FCF not include interest? FCF (Free Cash Flow) does not include interest because it represents the cash available to the company before financing costs, focusing on operating efficiency.

Can you have negative unlevered free cash flow? Yes, you can have negative unlevered free cash flow if a company’s operating costs and capital expenses are higher than its operating income.

Excel, QuickBooks

Unlevered free cash flow shows available cash for investment, indicating operational efficiency.

Unlevered free cash flow highlights available cash for investments, reflecting operational efficiency.