The price/cash flow ratio calculates value by dividing a stock's current price by the company's free cash flow over the trailing 12 months. It represents the price investors are willing to pay for $1 of cash generated by the company's operations.
The price/cash flow ratio calculates value by dividing a stock's current price by the company's free cash flow over the trailing 12 months. It represents the price investors are willing to pay for $1 of cash generated by the company's operations.