[size=5][center][b]Cash Flow Per Share[/b][/center][/size]
What Does Cash Flow Per Share Mean?
A measure of a firm's financial strength, calculated as follows:
Investopedia explains Cash Flow Per Share
Many analysts, as well as some of the greatest investors of all time, place more weight on cash flow per share than earnings per share. Because EPS is more easily manipulated, its reliability can at times be questionable. Cash, on the other hand, is difficult - if not impossible - to fake. You either have cash or you don't. Therefore, cash flow per share is a useful measure for the strength of a firm and the sustainability of its business model.
[url] http://www.investopedia.com/terms/c/cashflowpershare.asp [/url]
Company is still trading at 7.3 times Q2x4 operating cash flow.
Very cheap.
- liambert
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I'm wondering liambert, how many times operating cash flow would other companies trade at? Do you know, for example, how many times cash flow Red Back was trading at before it was bought?
Thanks. Appreciate your input.
- Bento
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Sure, Redback reported 27 cents/share in operating cash flow for Q2 versus GSSs 15 cents/share. At a price of $28, Redback is trading at about 26 times Q2x4 flow. That is about 3.5 times higher than GSS.
- liambert
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Wow. Thanks. Trading at the same multiples, if my math is correct, puts GSS at around $15.
I wonder what's holding GSS back. True, costs are higher, but we're talking about operating cash flow here. I still don't get it.
Thanks again, liambert.
- bento
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GSS isn't worth as much as Redback at this point in time, but it is certainly worth half as much!
If you don't realize it yet, GSS's huge positive cash flow is starting to have a transformational impact on GSS's exploration efforts. They just added 500,000+ ounces in one find.
GSS will be Redback's valuation in the not too distant future.
- liambert