Unlevered FCF is best described as cash flow that is available to whom?

Unlevered Free Cash Flow (UFCF) represents the cash generated by a company's core operations, irrespective of its capital structure—meaning it does not take into account the effects of debt financing. Since unlevered FCF is derived from the company's operating activities and is not influenced by interest expenses or debt repayments, it is available to all stakeholders in the business. This includes both equity stakeholders, such as shareholders, and debt holders, who have a claim on the company's cash flow.

By focusing on unlevered FCF, analysts can assess the company's operational profitability and cash generation capabilities without the distortion that may arise from financial leverage. This metric is particularly useful for evaluating the intrinsic value of the business, as it provides a clearer view of operational performance and cash flow potential before any financing decisions are made.