Free cash flow per share (FCF)

Category:Financial analysis
Alternative names: FCF

What is Free cash flow per share

Free cash flow per share (FCF) is profitability metric that is measuring the total amount of free cash flow generated by the company attributed to each individual share for over a period of one year.

How to calculate free cash flow per share (formula)

The formula for calculating FCF is using the free cash flow that the company has earned over the period to time and divide it by the total number of shares outstanding:

Free cash flow per share (FCF) = Free Cash Flow / Shares Outstanding

Free cash flow is calculated as cash from operations minus capital expenditures.

Stocks with high FCF per share

Name Free cash flow per share Marketcap Industry
CACC Credit Acceptance Corp $92.62 $6.5B Credit Services
MELI Mercadolibre Inc $92.14 $67.49B Internet Retail
NWLI National Western Life Group Inc $68.79 $1.78B Insurance - Life
RGA Reinsurance Group Of America Inc $61.36 $12.41B Insurance - Reinsurance
COKE Coca-Cola Consolidated Inc $56.44 $7.7B Beverages - Non-Alcoholic
HOV Hovnanian Enterprises Inc $55.25 $795.33M Residential Construction
NEU Newmarket Corp $55.11 $5.64B Specialty Chemicals

Why is FCF important

If a business is generating more cash flow per share that it need to cover its operating expenses and capital expenditures, then the free cash flow per share number should increase over time. Also, unlike earnings per share (EPS), free cash flow per share is a measure of profitability that excludes the non-cash expenses of the income statement (like depreciation and amortisation) and includes spending on equipment and assets as well as changes in working capital.

Related terms