Price-to-Cash Flow Ratio

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Price-to-Cash Flow Ratio

The ratio of a company's stock price to the quantity of its cash inflows, minus its cash outflows over a given time, usually a year. The price-to-cash flow is similar to a company's price-earnings ratio, but it does not take into account earnings that have not actually been received. Some analysts prefer the price-to-cash flow ratio because it allows them to assess risk relative to the company's cash on-hand, instead of the cash it ought to have.
References in periodicals archive ?
Many analysts prefer using the Price to Cash Flow metric to judge a stock's value.
And just like the P/E ratio is calculated by dividing the Price by its Earnings per share -- the Price to Cash Flow ratio is calculated by dividing the Price by its Cash Flow per share.
And just as the P/E ratio is calculated by dividing Price by its Earnings per share -- the Price to Cash Flow ratio is calculated by dividing Price by Cash Flow per share.
Besides, the stock is trading at a price to cash flow ratio of 10.