Cash per share

Cash per share divides a company's cash and short term investments by its shares outstanding, showing how much cash backs each share.

The formula is:

It gives a quick sense of how much of the share price is sitting in the bank. A company trading close to its cash per share may be valued as if the rest of the business is worth very little.

Cash per share ignores debt. A company with a lot of cash and even more debt can show a high figure while owing more than it holds, which is why net cash per share, which subtracts debt, is the stricter measure.