General Electric Is The King Of Free Cash Flow But Valuation Prompts Caution

Free cash flow (FCF) reflects the amount of cash free for distribution to all stakeholders, but the level of FCF does not always reflect the health of a business or its prospects. For example, a large amount of FCF can be a sign that a company has limited investment opportunities and, hence, limited growth prospects. On the other hand, negative FCF can be an attractive indication that a company has more investment opportunities than it can fund with internal cash flows. Zero FCF could mean that ...