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Why should cash flow be used for stock valuation over earnings per share?

Question: Why should cash flow be used for stock valuation over earnings per share?

(Posted by: valene72 on 2006-02-09 17:42:47)


Answers:

Posted by: Steve on 2006-02-09, 18:49:26

Cash flow is a more pure reading of exactly how the business is doing. EPS can have a lot of other factors that are variable from quarter to quarter, such as one time charges or different tax rates.

  

Posted by: Kevin (a.k.a. novell_mcne) on 2006-03-12, 02:00:11

It appears that the question period has expired. If you have received an answer that meets your needs, please choose one of those as a 'best answer.' If you haven't received a good answer for your question, you may want to consider the following, 1) Re-post your question. Newer questions get more activity on Yahoo! Answers than old ones. 2) If you do re-post your question, consider why it wasn't answered the first time. Could it be more specific? Could it be worded better? Were there grammatical or spelling errors? Was it in the best category? If it doesn't seem likely that re-posting your question will help you, then here's a listing of my favorite 'answer sites'. Maybe one of them will help you. Answers.com answers.com/ Bartleby bartleby.com/ Yahoo Reference education.yahoo.com/ reference/ HowStuffWorks howstuffworks.com/ Wikipedia en.wikipedia.org/ wiki/ Main_Page Since I really haven't answered your question, it is not necessary to give me any points. Regards.

  

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