Market capitalization / Cash flow or Share price / Cash flow per share

This ratio is often favoured over the PER because operating cash flow is arguably a better measure of business efficiency than net earnings, which is very much influenced by accounting principles as well as by management policies.
P/CF ratio widely varies from industry to industry : heavy investment businesses such as auto manufacturing or cable TV tend to have lower multiples than less capital intensive industries, like software.

  Calculation Rules
Cash Flow =Net Profit
 + Amortization
 + Depreciation
 + Minority interest in net income of subsidiaries

EPS growth

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