Free Cash Flow Per Share
A measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding. This measure serves as a proxy for measuring changes in earnings per share.
Calculated as:
Investopedia Says:
This measure signals a company's ability to pay debt, pay dividends, buy back stock and facilitate the growth of business. Also, the free cash flow per share can be used to give a preliminary prediction concerning future share prices. For example, when a firm's share price is low and free cash flow is on the rise, the odds are good that earnings and share value will soon be on the up, because a high cash flow per share value means that earnings per share should potentially be high as well. Related Terms:
Cash Flow
Cash Flow per Share
Dividend
Free Cash Flow
Free Cash Flow for the Firm
Free Cash Flow For The Firm - FCFF
Free Cash Flow Yield
Net Income
Shares Outstanding |