[Verse 1] Picture a company counting its treasure chest After paying salaries and keeping machines blessed Free cash flow appears when operations shine But wait, there's more to this financial design [Pre-Chorus] Debt holders knock first at the money door Interest and principal they must explore What remains belongs to shareholders true FCFE reveals what's really due [Chorus] Free Cash Flow to Equity, equity's slice After debt gets paid, what's the shareholder price FCFE shows the golden residue When creditors vanish, what belongs to you Equity's portion, crystal clear and bright FCFE illuminates ownership's right [Verse 2] Start with FCFF, the total cash machine Subtract interest payments from the scene Add back tax shields when debt creates relief Then adjust for borrowing, net and brief [Pre-Chorus] New debt brings money flowing in the gate Repayments drain the equity estate This delicate arithmetic reveals The cash that equity truly feels [Chorus] Free Cash Flow to Equity, equity's slice After debt gets paid, what's the shareholder price FCFE shows the golden residue When creditors vanish, what belongs to you Equity's portion, crystal clear and bright FCFE illuminates ownership's right [Bridge] FCFF feeds everyone at the table wide FCFE serves equity's side Valuation models need this precision tool Dividend capacity, the ultimate jewel [Verse 3] When analysts value shares with careful eyes FCFE becomes their compass and their guide Discount these flows to present value terms Watch equity's true worth slowly emerge [Chorus] Free Cash Flow to Equity, equity's slice After debt gets paid, what's the shareholder price FCFE shows the golden residue When creditors vanish, what belongs to you Equity's portion, crystal clear and bright FCFE illuminates ownership's right [Outro] From operations to equity's door FCFE reveals what shareholders explore The cash that's truly theirs to claim In the valuation game
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