Free Cash Flow is vital for traders and investors as it indicates a company’s ability to generate surplus cash, which can be used for dividends, buybacks, debt reduction, or reinvestment. Positive FCF suggests financial stability and growth potential, whereas negative FCF may signal operational challenges or high capital expenses. Tracking FCF helps investors assess whether a company is financially sound and capable of funding future growth. It is also used to evaluate valuation models, such as discounted cash flow (DCF) analysis.