Price-to-Cash Flow Ratio

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 ?
Once you have filtered the list of candidates, you can further fine tune it by comparing each stock's price-to-book value ratio, price-to-cash flow ratio and price-to-sales ratio against industry and overall market average.
AN INVESTOR WHO IS WILLING TO follow the value school of investing should consider eight factors in selecting securities (or mutual funds), including price-to-earnings ratio, price-to-cash flow ratio, price-to-book value ratio, dividend yield, private market value, adjusted net working capital, insider buying and stock repurchases.
The reference index MSCI USA Prime Value 100% hedged to EUR Index includes companies with a relatively low valuation, taking into account indicators such as the price-to-earnings, price-to-book, price-to-sales as well as price-to-cash flow ratios.
CHICAGO -- Kevin Matras shows how to search for stocks with increasing Cash Flows, but low Price-to-Cash Flow ratios.