Find out more about free cash flow, the formula for calculating free cash flow, and how to calculate a company's free cash flow using Microsoft Excel.

Free cash flow (FCF) is the amount of money a company has that exceeds the amount needed to sustain and grow the business.

Here's an explanation and simple example of how to calculate the present value of free cash flow.

To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...