Free Cash Flow per Share
A measure of a company's financial flexibility. It is calculated as net income plus all non-cash expenses less dividends and capital expenditures. The total is then divided by the number of shares outstanding.
Investopedia Commentary
This measure signals a company's ability to pay debt, pay dividends, buy back stock and facilitate the growth of business. When a firm's share price is low and free cash flow is on the rise, the odds are good that earnings and share value will soon be on the up.
Related Links
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The Essentials Of Cash Flow
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See also: Cash Flow, Cash Flow per Share, Dividend, Free Cash Flow, Free Cash Flow for the Firm, Net Income, Shares Outstanding