FCF Per Share

Explanation: Free Cash Flow Per Share (FCF/Share) is a financial measure that indicates the amount of free cash flow a company generates per outstanding share of its common stock. Free cash flow is the cash remaining after a company covers its operating expenses, capital expenditures (such as investments in property, plant, and equipment), and expansion of its asset base. To calculate FCF/Share, we divide the company’s total free cash flow by the number of outstanding shares.

Example: TCS has FCF/Share of 109.31 rupees as of FY23. This means that for each outstanding share of TCS’s common stock, the company generated free cash flow of 109.31 rupees during the fiscal year. Free cash flow per share is an important measure of a company’s financial health and its ability to generate cash from its core operations. It provides insight into the company’s ability to invest in growth opportunities, return capital to shareholders through dividends or share buybacks, or pay down debt. Investors often use FCF/Share as a key indicator of a company’s profitability and financial performance.

You can view the FCF/Share value for any company on Radar under Per Share Ratios in the Ratios section.