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We create a new profitability/valuation framework based on a firm's cash-flows. The traditional Profitability/Valuation framework is derived from the Residual Income Model (hereafter \textit{RIM}) which is in fact a derivation of the Dividend Discount Model (hereafter \textit{DDM}). Drawbacks of the dividend or earnings approach to valuation are well known : earnings are known. We create  a pure accounting measure that can be manipulated because it incorporates non-cash items of the income statement. Another drawback often mentioned by practitioners is that profitability measures new profitability/valuation framework  based onearnings depend on  a firm's gearing, defined as the amount of debt relative to equity. A company can have an attractive Return on Equity (hereafter \textit{ROE}) despite having an unattractive Return on Invested Capital (hereafter \textit{ROIC}). More importantly, a company using financial leverage cash-flows. This should allow  to enhance its \textit{ROE} actually makes it more volatile often at the expense contourner caveats  of its financial strength (measured by the health of the balance sheet). earnings/dividends valuation model.  We build a new Profitability/Valuation framework that hinges on the cash-flows a firm is able to generate. Using cash-flows allows to neutralize the leverage effect at the operating level of a firm as well as the balance sheet level. The paper is organized as follow. The first section deals with accounting relationship.