Price to Cash Flow Ratio Calculator

✖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.ⓘ Current Share Price [C_shp]			+10% -10%
✖Operating Cash Flow refers to the amount of cash generated by the regular operating activities of a business within a specific time period.ⓘ Operating Cash Flow [O_cf]			+10% -10%

✖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.ⓘ Price to Cash Flow Ratio [PCFR]

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Formula

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Price to Cash Flow Ratio

Formula

`"PCFR" = "C"_{"shp"}/"O"_{"cf"}`

Example

`"2"="8400000"/"4200000"`

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Price to Cash Flow Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow
PCFR = C_shp/O_cf
This formula uses 3 Variables

Variables Used

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.
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.
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.

STEP 1: Convert Input(s) to Base Unit

Current Share Price: 8400000 --> No Conversion Required
Operating Cash Flow: 4200000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PCFR = C_shp/O_cf --> 8400000/4200000

Evaluating ... ...

PCFR = 2

STEP 3: Convert Result to Output's Unit

2 --> No Conversion Required

FINAL ANSWER

2 <-- Price to Cash Flow Ratio

(Calculation completed in 00.004 seconds)

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Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 19 Equity Calculators

Float-Adjusted Market Capitalisation Index

Go Float Adjusted Market Capitalisation = (Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)/(sum(x,1,Number of Securities in the Index,(Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)))

Market Capitalization Index

Go Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security)))

Laspeyres Price Index

Go Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100

Paasche Price Index

Go Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100

Altman's Z Score Model

Go Zeta Value = 1.2*Working Capital+1.4*Retained Earnings+3.3*Earnings Before Interest and Taxes+0.6*Market Value of Equity+1.0*Total Sales

Capital Allocation Line

Go Expected Return on Portfolio = ((Expected Return on Treasury Bill*Weight of Treasury Bill)+(Expected Return of Stock*Weight of Stock))*100

Justified Forward Price to Earnings Ratio

Go Justified Forward Price to Earnings Ratio = (Dividend/Earnings Per Share)/(Cost of Equity-Growth Rate)

Margin Call Price

Go Margin Call Price = Initial Purchase Price*((1-Initial Margin Requirement)/(1-Maintenance Margin Requirement))

Dividend Coverage Ratio

Go Dividend Coverage Ratio = (Net Income-Preferred Dividend)/Common Dividend

Fisher Price Index

Go Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index)

Momentum Indicator

Go Momentum Indicator = (Closing Price of Particular Stock/Closing Price of Stock N Days Ago)*100

Marshall-Edgeworth Price Index

Go Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2

Dividend Growth Rate

Go Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1

Price to Cash Flow Ratio

Go Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow

Margin Account Value

Go Margin Account Value = (Margin Loan)/(1-Maintenance Margin)

Sustainable Growth Rate

Go Sustainable Growth Rate = Retention Ratio*Return on Equity

Ev to Ebitda Ratio

Go Enterprise Value to Ebitda Ratio = Enterprise Value/EBITDA

Maximum Leverage Ratio

Go Maximum Leverage Ratio = 1/Initial Margin Requirement

Equal Weighting

Go Equal Weighting = 1/Number of Securities in the Index

Price to Cash Flow Ratio Formula

Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow
PCFR = C_shp/O_cf

What do you mean by Price to Cash Flow Ratio ?

Price to Cash Flow Ratio refers to an evaluation mechanism for calculating the valuation of a company's stock relative to its cash flow. The Price to Cash Flow ratio provides insight into how much investors are willing to pay for each dollar of the company's cash flow. A lower ratio may suggest that the stock is undervalued relative to its cash flow, while a higher ratio may indicate overvaluation. Similar to any financial ratio, the P/CF ratio should be used in conjunction with other financial metrics and qualitative analysis to make informed investment decisions. Additionally, it's essential to compare the ratio with industry peers and historical data to gain a more comprehensive understanding of the company's valuation.

How to Calculate Price to Cash Flow Ratio?

Price to Cash Flow Ratio calculator uses Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow to calculate 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 calculate Price to Cash Flow Ratio using this online calculator? To use this online calculator for Price to Cash Flow Ratio, enter Current Share Price (C_shp) & Operating Cash Flow (O_cf) and hit the calculate button. Here is how the Price to Cash Flow Ratio calculation can be explained with given input values -> 2 = 8400000/4200000.

FAQ

What is 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 and is represented as PCFR = C_shp/O_cf or Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow. 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 & Operating Cash Flow refers to the amount of cash generated by the regular operating activities of a business within a specific time period.

How to calculate 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 is calculated using Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow. To calculate Price to Cash Flow Ratio, you need Current Share Price (C_shp) & Operating Cash Flow (O_cf). With our tool, you need to enter the respective value for Current Share Price & Operating Cash Flow and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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