Cash Flow & Capital Allocation
Free Cash Flow / Share
Allocates free cash after required reinvestment across average, usually diluted, shares. This matters because an investor owns a fraction of the company, not the aggregate: if share count rises, per-share economics can fall even when the total grows.
Free Cash Flow / Share
freeCashFlowPerShare · Cash Flow & Capital Allocation
- Definition
- Allocates free cash after required reinvestment across average, usually diluted, shares. This matters because an investor owns a fraction of the company, not the aggregate: if share count rises, per-share economics can fall even when the total grows.
- Uses
- Very useful in companies with buybacks, stock compensation, stock-funded acquisitions or convertibles. It can mislead if splits, one-off buybacks or dilutive instruments are not adjusted. Cross-check diluted shares, FCF per share, EPS and ROIC.
