Price to Cash Flow Ratio Formula

Fx Copy
LaTeX Copy
Price to Cash Flow Ratio is a common method used to assess the market valuation of publicly-traded companies, or more specifically, to decide if a company is undervalued or overvalued. Check FAQs
PCFR=CshpOcf
PCFR - Price to Cash Flow Ratio?Cshp - Current Share Price?Ocf - Operating Cash Flow?

Price to Cash Flow Ratio Example

With values
With units
Only example

Here is how the Price to Cash Flow Ratio equation looks like with Values.

Here is how the Price to Cash Flow Ratio equation looks like with Units.

Here is how the Price to Cash Flow Ratio equation looks like.

2Edit=8.4E+6Edit4.2E+6Edit
You are here -
HomeIcon Home » Category Financial » Category Equity » fx Price to Cash Flow Ratio

Price to Cash Flow Ratio Solution

Follow our step by step solution on how to calculate Price to Cash Flow Ratio?

FIRST Step Consider the formula
PCFR=CshpOcf
Next Step Substitute values of Variables
PCFR=8.4E+64.2E+6
Next Step Prepare to Evaluate
PCFR=8.4E+64.2E+6
LAST Step Evaluate
PCFR=2

Price to Cash Flow Ratio Formula Elements

Variables
Price to Cash Flow Ratio
Price to Cash Flow Ratio is a common method used to assess the market valuation of publicly-traded companies, or more specifically, to decide if a company is undervalued or overvalued.
Symbol: PCFR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Current Share Price
Current Share Price refers to the current market price of a single share of a company's stock and it represents the value that investors are willing to pay for ownership in that company.
Symbol: Cshp
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Operating Cash Flow
Operating Cash Flow refers to the amount of cash generated by the regular operating activities of a business within a specific time period.
Symbol: Ocf
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Equity category

​Go Maximum Leverage Ratio
MLR=1IMR
​Go Margin Call Price
MCP=P0(1-IMR1-MMR)
​Go Marshall-Edgeworth Price Index
MEI=LPI+PPI2
​Go Fisher Price Index
FPI=LPIPPI

How to Evaluate Price to Cash Flow Ratio?

Price to Cash Flow Ratio evaluator uses Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow to evaluate the Price to Cash Flow Ratio, Price to Cash Flow Ratio is a financial metric used to evaluate the valuation of a company's stock relative to its cash flow. It compares the market price per share of a company's stock to its cash flow per share. Price to Cash Flow Ratio is denoted by PCFR symbol.

How to evaluate Price to Cash Flow Ratio using this online evaluator? To use this online evaluator for Price to Cash Flow Ratio, enter Current Share Price (Cshp) & Operating Cash Flow (Ocf) and hit the calculate button.

FAQs on Price to Cash Flow Ratio

What is the formula to find Price to Cash Flow Ratio?
The formula of Price to Cash Flow Ratio is expressed as Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow. Here is an example- 2 = 8400000/4200000.
How to calculate Price to Cash Flow Ratio?
With Current Share Price (Cshp) & Operating Cash Flow (Ocf) we can find Price to Cash Flow Ratio using the formula - Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow.
Copied!