PRICE TO CASH-FLOW

Price to Cash-flow




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Company  P/CF  Country Industry
DONG Energy8.40DenmarkUtilities
Covestro AG6.10GermanyBasic Materials
CommerceHub Series0.00USATechnology
Amundi18.40FranceFinancials
S&P Global0.00USAFinancials
Moneta Money Bank6.10Czeck RepublicFinancials
LIBERTY SIRIUSXM SER6.60USAConsumer Services
LIBERTY BRAVES SERIE12.20USAConsumer Services
CCR SA14.10BrazilIndustrials
Megacable Holdings S14.00MexicoConsumer Services
Ingevity22.20USABasic Materials
Fibria Celulose S.A.2.50BrazilBasic Materials
Enersis Americas SA3.20ChileUtilities
Concordia Financial10.40JapanFinancials
ENDESA Americas6.40ChileUtilities
Enagas10.40SpainUtilities

Price/cash-flow ratio (P/CF) is a term used in financial analysis. It is a liquidity-oriented equity ratio that reflects the ratio of stock price to cash flow per share. It requires an additional indication of what kind of cash flow (for example, gross cash flow, operating cash flow or free cash flow) is meant. In our case, Cash-flow is calculated by adding depreciations, amortizations and other non-cash items to earnings (net profits) of the year, this is call indirect method.

The P/CF can be used in addition to or in place of price-earnings ratio. The Price to Cash-flow is less susceptible to accounting technical manipulations than price to earnings ratio, because the cash flow is not affected by accounting policy measures such as eliminating of hiding expenses, modifying revenues or depreciations accounting or by alteration of payment periods.

Price to Cash-flow

For companies that determine their profit according to different accounting rules (comparison of companies from different countries), the P/CF can provide a better ratio than P/E.

However, cash-flows are due to investment and ratios suffer considerably stronger fluctuations than those calculated over earnings. It is therefore not appropriate to evaluate the result of a single financial year, but must be considered and averaged over several years.

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