Cash Flow Return on Investment (CFROI)
A valuation model that assumes the stock market sets prices based on cash flow, not on corporate performance and earnings.
Investopedia Says:
It's valuable to consider as many models as possible when looking at the stock market. Financial theory is similar to scientific theory; no model can be entirely proved or disproved, and a diversity of opinions is encouraged Related Terms:
Capital Employed
Cash Flow
Cash Return On Capital Invested - CROCI
Return on Investment |