Price-to-Cash Flow (P/CF) = Share Price÷ Operating Cash Flow Per Share To calculate the operating cash flow per share, there are two financial metrics required: Cash from Operations (CFO): The company’s annual operating cash flow. Total Diluted Shares Outstanding: The total number of tota...
The Price to Cash Flow ratio formula is calculated by dividing the share price by the operating cash flow per share: Price to Cash Flow = Share Price (or Market Cap) / Operating Cash Flow per share (or Operating Cash Flow) The P/CF ratio equation can also be calculated using the market...
The Price to Free Cash Flow (P/FCF) ratio is a valuation metric thatcompares a company’s stock price to its free cash flow. By dividing the stock price by the free cash flow per share, the P/FCF ratio provides insight into how much investors are willing to pay for each unit of cas...
Price to Cash Flow Ratio= Share Price / Cash Flow Per Share As you can see, to calculate the price-to-cash-flow ratio, you merely take the price per share of a stock, and divide it by the cash flow per share. The number you receive when using this formula is called a cash flow ...
The price to cash flow ratio compares a company's current price per share with the amount of cash flow the company generates per year. As companies are valued on the cash flows they produce over time, paying less of a multiple per amount of cash flow is – all else equal – better tha...
Article reports on the price to cash flow ratio, including performance statistics, written by internationally known author and trader Thomas Bulkowski.
What is the Price-to-Cash Flow Ratio? The price-to-cash flow (also denoted as price/cash flow or P/CF) ratio is a financial multiple that compares a company’smarket valueto its operating cash flow (or the company’s stock price per share to its operating cash flow per share). ...
Price/Cash Flow Ratio = Stock Price per Share / Operating Cash Flow per Share Most of the Financial Experts advice to use P/CF ratio for better and realistic assessment. In case of big companies, depreciation and amortization figure is very high which greatly affects the net income figure....
The price-to-cash flow (P/CF) ratio measures the value of a stock’s price relative to its operating cash flow per share.
Let's assume that the average 30-day stock price of company ABC is $20—within the last 12 months $1 million of cash flow was generated and the firm has 200,000 shares outstanding. Calculating thecash flow per share, a value of $5 is obtained ($1 million ÷ 200,000 shares). Follow...