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A high P/CF ratio indicated that the specific firm is trading at a high price but is not generating enough cash flows to support the multipleāsometimes this is OK, depending on the firm, industry, and its specific operations. Smaller price ratios are generally preferred, as they may reveal a firm
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generating ample cash flows that are not yet properly considered in the current share price. Holding all factors constant, from an investment perspective, a smaller P/CF is preferred over a larger multiple.
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by the per-share operating cash flow. In theory, the lower a stock's price/cash flow ratio is, the better value that stock is.
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in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share
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CFPS = (NI + Depreciation + Amortization)/ Common Shares
Outstanding
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For example, if the stock price for two companies is
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178:=5) and the other company has a cash flow of
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117:Learn how and when to remove this message
228:"Analyzing The Price-To-Cash-Flow Ratio"
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365:Present value of growth opportunities
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331:Enterprise value/gross cash invested
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131:price/cash flow ratio
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49:Please help
44:verification
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442:Risk return
389:Price-sales
327:(EV/EBITDA)
155:stock price
339:(EV/Sales)
293:(Cap Rate)
213:References
180:$ 10/share
162:$ 25/share
147:market cap
77:newspapers
166:$ 5/share
143:cash flow
485:Category
333:(EV/GCI)
470:Treynor
459:Sortino
438:(RAROC)
299:(CROCI)
187:⁄
173:⁄
91:scholar
448:Sharpe
432:(ROTE)
420:(ROCE)
408:(RONA)
373:(P/CF)
367:(PVGO)
287:(CAPE)
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466:(SGR)
455:(SIR)
444:(RRR)
426:(ROE)
414:(ROC)
402:(ROA)
391:(P/S)
385:(PEG)
379:(P/E)
361:(P/B)
349:Omega
345:(LTV)
321:(E/P)
305:(D/E)
98:JSTOR
84:books
139:P/CF
129:The
70:news
137:or
53:by
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