The Importance of Cash Flow (vs. Earnings) July 22, 2009 Dear Investor: The disparity between cash flow and earnings is leading people to severely underestimate the current value of stocks. When I teach corporate finance to my NYU students, I ask them to understand it this way: cash flow is real money, earnings are not. Imagine you run a pizza parlor. The money you take in (less what you pay out in expenses) is cash flow-the actual net cash...