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# EV to Free Cash

This ratio is the enterprise value (EV) of a company divided by its free cash flow (FCF), which refers to cash flow available to all capital providers (both equity and debt providers) of the company. A high EV/FCF may indicate that a company is overvalued, and vice versa.

where:

$//$ is the equity value of company $//$ at time  $//$
$//$ is the total debt of the company, including both long-term and short-term debt on the balance sheet
$//$ is the cash flow available for debt service (free cash flow) at time $//$
$//$ is the senior debt service at time  $//$
$//$ is the total cash in the bank at time  $//$
$//$ is the total cash in the bank at time  $//$

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