Search Investopedia

Cash Flow Per Share

Filed Under » ,
Dictionary Says

Definition of 'Cash Flow Per Share'

A measure of a firm's financial strength, calculated as follows:

Cash Flow Per Share
Investopedia Says

Investopedia explains 'Cash Flow Per Share'

Many analysts, as well as some of the greatest investors of all time, place more weight on cash flow per share than earnings per share. Because EPS is more easily manipulated, its reliability can at times be questionable. Cash, on the other hand, is difficult - if not impossible - to fake. You either have cash or you don't. Therefore, cash flow per share is a useful measure for the strength of a firm and the sustainability of its business model.

Related Definitions

  •

    Cash Flow

    1. A revenue or expense stream that changes a cash account over a given period. Cash inflows usually arise from one of three activities - financing, operations or investing - although ...
    Read More »

  • Burn Rate

    The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations. In other words, it's a measure of negative cash flow.
    Read More »

  • 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.
    Read More »

    • Discounted Cash Flow - DCF

      A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most ...
      Read More »

    • Free Cash Flow - FCF

      A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying ...
      Read More »

    • Free Cash Flow For The Firm - FCFF

      A measure of financial performance that expresses the net amount of cash that is generated for the firm, consisting of expenses, taxes and changes in net working capital and ...
      Read More »

    • Operating Cash Flow - OCF

      The cash generated from the operations of a company, generally defined as revenues less all operating expenses, but calculated through a series of adjustments to net income. The OCF can ...
      Read More »

    • Preferred Stock

      A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before ...
      Read More »

    • Dividend

      1. A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount ...
      Read More »

    • Outstanding Shares

      Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. Shares that have been repurchased by the ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions