Dear All :

I saw in the schesser note, FCF ( free cash flow) as follows:

FCF = NI + Interest ( 1- t) + change deferred tax + depreciation - change NWC - CAPEX

It seems to me that FCF is different from FCFF and FCFE according to the above formula, is it correct?

Thank you so much for your time.

FCF should be the same as FCFF if I am not mistaken.

It is the same. They are 2 different definitions from different topics. the one you pasted above is from Corporate finance and the other is from the Equity section.

Note that the formula from Equity is:

FCFF = Nl + NCC + [lnt *(l- tax rate)]- FCInv- WCInv

where NCC is a non cash charge. So in our corporate finance material the terms:

change deferred tax + depreciation = NCC

Hopefully this clears your doubt.

FCF is usually referred to FCFF.