Price to Cash Flow

Price to Cash Flow = Market value of the company /  Cash from operating activities

Price to Cash Flow differs from the Price to Free Cash Flow where capital expenditure is deducted from cash from operating activities.

 

Remember

All ratios are calculated on a trailing 12 months (TTM) basis.

This means the last twelve months (not the company’s financial year) is compared to the same period in the past. We do this to make sure that the screener data includes the latest, most up to date, financial results of the company.

 

How to use the ratio

Available as a screening ratio: No

Available as an output column ratio: Yes (Look under the Valuation heading)

 

How to select the lowers Price to Cash Flow companies

To find undervalued companies with the lowest Price to Cash Flow ratio:

  • Run a screen
  • Select Price to Cash Flow as an output column
  • Click on the column heading to sort it from low to high.

 

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