What is a 'Cash Flow Return on Investment  CFROI'
A cash flow return on investment (CFROI) is a valuation model that assumes the stock market sets prices based on cash flow, not on corporate performance and earnings.
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BREAKING DOWN 'Cash Flow Return on Investment  CFROI'
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
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RELATED FAQS

What's the difference between free cash flow and operating cash flow?
Learn the difference between free cash flow and operating cash flow. Explore how analysts use earnings and cash flow when ... Read Answer >> 
What is the formula for calculating free cash flow?
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What is the difference between cash flow and fund flow?
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Are taxes calculated in operating cash flow?
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What is the difference between cash flow and free cash flow?
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How should I evaluate a company with negative cash flow investing activities?
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