The Significance of Free Cash Flow in Company Valuations

Free cash flow (FCF) represents the cash a company can produce after removing the purchase of assets such as property, equipment, and other major investments from its operating cash flow. FCF measures a company’s ability to produce cash that can be distributed in a discretionary way. Knowing a company’s FCF lets management decide which future [...] The post The Significance of Free Cash Flow in Company Valuations appeared first on ETF Trends .