What is the Price-to-Cash-Flow ratio?
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The Price-to-Cash-Flow ratio is calculated as Share Price divided by Cash Flow Per Share. It is a valuation measure that compares a company's market value to its operating cash flow and is particularly useful for companies with significant non-cash expenses.
Think about price compared to the cash a business actually generates. Divide share price by cash flow per share — useful when big non-cash charges distort earnings.