Cash Flow Return on Investment - CFROI

What Does Cash Flow Return on Investment - CFROI Mean?
A valuation model that assumes the stock market sets prices based on cash flow, not on corporate performance and earnings.

Investopedia explains 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

Related Terms

Capital Employed
Cash Flow
Cash Return On Capital Invested - CROCI
Return on Investment
More Related Terms

Related Links

What Is A Cash Flow Statement? - Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.
Operating Cash Flow: Better Than Net Income? - Differences between accrual accounting and cash flows show why net income is easier to manipulate.
The Essentials Of Cash Flow - Tune out the accounting noise and see whether a company is generating the stuff it needs to sustain itself.
Cash Flow On Steroids: Why Companies Cheat - Pressure to be the best can sometimes push corporations to cheat. Learn how they do it and how to spot it.

Rate this Term: Your Rating: Overall Rating: Vote Now!