Equity Valuation
Price-to-Cash-Flow Ratio
Definition
What is Price-to-Cash-Flow Ratio?
Share priceThe market price at which one share is quoted or traded. or market valueThe price at which an asset could trade in the market at a given time. divided by cash flow per share or total cash flow.
Example in practice
How This Looks in Practice
Analysts use cash flow when accounting earnings contain large non-cash items.
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Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.