Price-to-Cash Flow Ratio (P/CF)
Definition
A valuation ratio comparing a company's market price per share to its operating cash flow per share, useful for assessing a company's ability to generate cash relative to its stock price.
Formula / Rules
P/CF = Market Price Per Share / Operating Cash Flow Per Share
Example
A stock at $50 with $8 operating cash flow per share has a P/CF of 6.25 — lower is generally cheaper.
Related Terms
Frequently Asked Question
What is the Price-to-Cash Flow (P/CF) Ratio?
P/CF compares a stock's price to its operating cash flow per share. Lower P/CF suggests the company generates more cash relative to its price. Less susceptible to earnings manipulation than P/E.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.