Free cash flow to firm (FCFF) is the cash generated by a company that is available to all its investors, including equity holders and debt holders, after accounting for all operating expenses and necessary capital expenditures. It reflects the company's ability to generate cash from its operations, which can be used for investments, paying off debt, or returning capital to shareholders. FCFF is crucial in evaluating the overall financial health and valuation of a company, particularly when applying valuation models that rely on cash flow forecasts.
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