what a company chooses to do with its levered free cash flow is also important to investors a company may choose to devote a substantial amount of its levered free cash flow to dividend payments or for investment in the company if on the other hand the company s management perceives an important opportunity for growth and market expansion it may choose to devote nearly all of its levered free cash flow to funding potential growth 
levered free cash flow lfcf vs unlevered free cash flow ufcf levered free cash flow is the amount of cash a business has after paying debts and other obligations unlevered free cash flow ufcf is the amount of cash a company has prior to making its debt payments ufcf is calculated as ebitda minus capex minus working capital minus taxes lfcf is the cash flow available to pay shareholders while ufcf is the money available to pay shareholders and debtholders levered free cash flow is considered the more important figure for investors to watch as it s a better indicator of a company s profitability 