Cash Flow Return on Investment - CFROI

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DEFINITION of '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.

Cash Flow Return on Investment (CFROI)

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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