Free cash flow per share

Free cash flow per share,

Definition of Free cash flow per share:

  1. Free cash flow per share (FCF) is 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.

  2. Ideally, a business will generate more cash flow than is required for operational expenses and capital expenditures. When they do, the free cash flow per share metric below will increase, as the numerator grows holding shares outstanding constant. Increasing free cash flow to outstanding shares value is a positive, as a company is regarded as improving prospects and more financial & operational flexibility.

  3. How well a company is performing based on how much revenue is generated from the number of investments held by investors.

Meaning of Free cash flow per share & Free cash flow per share Definition