Determining the worth of a company or how the company is performing can be done in a number of ways. One way to look at a company's performance is to calculate the unlevered free cash flow for the time period in question. At its most basic, unlevered free cash flow is the cash available to all capital investors without taking into account any interest payments due on the outstanding capital debt. To calculate a company's UFCF, you must first determine the company's unlevered net income along the way.

Locate the company's earning before interest and taxes, or EBIT. This can typically be found on a company's income statement.

Add the amortization of non-deductible goodwill to the EBIT amount. Goodwill is the difference between the purchase price of something and its actual value. As goodwill has no real independent value, accounting principles require that it be amortized and depreciated over time.

Multiply the total from Step 2 by one times the tax rate (1.0 x tax rate) to arrive at the unlevered net income amount.

#### Tips

If you do not have the EBIT amount, yo can take the annual sales amount and subtract cash costs and depreciation to arrive at the EBIT figure.