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How can this definition of Free cash flow help to measure the performance(stock price) of the company.

 

Introduction

  • What is Free Cash Flow (describe it in the financial literacy and accounting literacy)

  • Importance of Free Cash Flow

  • Misuse of Free Cash Flow

 

Body

  • What causes different calculations of Free Cash Flow definitions

  • Which F CF calculations(definition) is most associated with stock price changes

    • What this means for investors?

    • What it means for companies paying dividends.

  • How can this definition of Free cash flow help to measure the performance(stock price) of the company

  • Which method is best in predicting a firm’s performance (Free cash flow, earnings or Operating cash flow) (explain why?)

 

Conclusion

  • Our view on the definition of Free cash flow and its different uses

  • Recommendation for standardization of free cash flow

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