Free cash flow per share definition
/What is Free Cash Flow per Share?
Free cash flow per share measures the amount of cash spun off by a business. A significant amount of free cash flow per share, and especially when it is trending up, indicates that a business has sufficient cash to pay down debt , acquire assets , pay dividends , and so forth.
How to Calculate Free Cash Flow per Share
The calculation of free cash flow per share is total free cash flow , divided by the weighted average number of shares outstanding during the measurement period. The formula is as follows:
Free cash flow ÷ Weighted average number of shares outstanding = Free cash flow per share
