Price / Free Cash Flow is the Market capitalization of the company divided by free cash flow for the most recent financial year. It is an equity valuation metric that indicates a company’s ability to generate additional revenues. A lower value for price to free cash flow could indicate that the company is cash-rich but the market isn’t betting on its ability to use this cash for further growth. A higher ratio might suggest that the company is valued by the market based on intangibles like brand recall, future prospects but the company isn’t generating a lot of cash.
Price / Free Cash Flow Print
Modified on: Tue, 22 Jun, 2021 at 4:08 PM
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