Cash PSCash per share ratio, is defined as cash & equivalents divided by the number of ordinary shares in issue, expressed in pence (currency being GBP). The formula is as follows:
= (cash & equivalents / shares in issue) * 100
Note: In a healthy industrial company, a Cash per share ratio that is close to the share price might suggest that investors are currently underestimating the worth of the company's ongoing business, thereby creating an interesting investment opportunity.
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