Price-To-Cash-Flow Ratio

What Does Price-To-Cash-Flow Ratio Mean?
A measure of the market's expectations of a firm's future financial health. Because this measure deals with cash flow, the effects of depreciation and other non-cash factors are removed. Similar to the price-earnings ratio, this measures provides an indication of relative value.

Calculated by:

Investopedia explains Price-To-Cash-Flow Ratio
Because accounting laws on depreciation vary across jurisdictions, the price-to-cash-flow ratio can allow investors to assess foreign companies from the same industry (ex. mining industry) with a bit more ease.

Related Terms

Cash Flow
Cash Flow Per Share
International Equity Stylebox
Price Multiple
Price to Free Cash Flow
Price-Earnings Ratio - P/E Ratio
Price-To-Cash-Flow Ratio
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