Fundamental Glossary / Cash Flow Metrics
Cash Flow Per Share
Operating cash flow, or sometimes free cash flow, divided by the share count.
Formula
Operating cash flow / weighted average shares. Say if the numerator is free cash flow instead.
What it means
Per-share cash flow lets you compare the cash engine with the share price, just as EPS lets you compare profit with the price.
Use a diluted count if instruments are materially dilutive, so the cash is not all attributed to the current shares.
How to read it
A price that is a low multiple of repeatable cash flow per share is the cash version of a value screen. "Repeatable" does the work in that sentence.
What to watch
One year of cash flow per share boosted by a payable stretch will make the shares look cheap. Average it.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.