Free Cash Flow per Share

Free cash flow divided by shares outstanding: the cash generated per share after capital spending. The cash counterpart of earnings per share.

When to use: Use to compare against the share price (price over FCF per share is P/FCF) and against dividends per share, which shows how comfortably the dividend is covered by cash.

Calculator

Formula

\text{FCF/Share} = \frac{\text{FCF}}{\text{Shares}}

Variables

Symbol	Name	Description	Unit
FCFPerShare	FCF per Share	Free cash flow per share	$
FCF	Free Cash Flow	Operating cash flow minus capital expenditures	$
Shares	Shares Outstanding	Diluted shares outstanding	integer

Real-Life Examples

Example 1: Cash Generator

Free cash flow $400M, 200M shares.

Given

FCF = $400,000,000.00Shares = 200,000,000.00

Step-by-Step

1.Company-wide monetary amounts and share counts in the arithmetic below are in millions; per-share amounts are dollars. The Given inputs use full amounts.

2.FCF/Share = 400 / 200

3.FCF/Share = $2.00

Result:$2.00

$2.00 of free cash per share. If the dividend is $1.00, it is covered twice over by cash, not just by accounting earnings.

Example 2: Widely Held Growth Company

Free cash flow $300M, 750M shares.

Given

FCF = $300,000,000.00Shares = 750,000,000.00

Step-by-Step

1.Company-wide monetary amounts and share counts in the arithmetic below are in millions; per-share amounts are dollars. The Given inputs use full amounts.

2.FCF/Share = 300 / 750

3.FCF/Share = $0.40

Result:$0.40

Forty cents a share. At a $16 share price that is a 2.5% free cash flow yield, the same 40x P/FCF seen from the other direction.

Frequently Asked Questions

Diluted weighted-average shares, the same basis as EPS, so the two per-share figures are comparable.

Related Formulas

Price-to-Free-Cash-Flow (P/FCF)

Dividends per Share (DPS)

Free Cash Flow

Price-to-Free-Cash-Flow (P/FCF)Free Cash Flow to Equity (FCFE)