Free Cash Flow per Share

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Free Cash Flow per Share

A measure of a publicly-traded company's cash on hand, calculated by dividing the company's free cash flow by the number of shares outstanding. Free cash flow per share helps one determine a company's ability to service debt, pay dividends, and perform other transactions. A high free cash flow per share, coupled with a low share price, indicates that the company likely has strong earnings and that the share price will soon rise.