What is price to cash per share?

The price-to-cash flow (P/CF) ratio is a stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow per share. The ratio uses operating cash flow which adds back non-cash expenses such as depreciation and amortization to net income.

What is a good price to cash ratio?

Currently, the average Price to Cash Flow (P/CF) for the stocks in the S&P 500 is 14.05. But just like the P/E ratio, a value of less than 15 to 20 is generally considered good.

Is a high price to cash flow ratio good?

A high P/CF ratio indicated that the specific firm is trading at a high price but is not generating enough cash flows to support the multiple—sometimes this is OK, depending on the firm, industry, and its specific operations.

How do you calculate cash per share?

Cash per share is a financial ratio that can be calculated by tallying up a company’s total cash on its balance sheet, including easy to liquidate short-term investments, and then dividing that figure by the number of shares outstanding.

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How do you calculate price to cash flow ratio?

It is calculated by dividing the company’s market cap by the company’s operating cash flow in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share stock price by the per-share operating cash flow.

What’s a good price to sales?

Price-to-sales (P/S) ratios between one and two are generally considered good, while a P/S ratio of less than one is considered excellent. As with all equity valuation metrics, P/S ratios can vary significantly between industries.

What is price per cash flow?

The price-to-cash flow (P/CF) ratio is a stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow per share. The ratio uses operating cash flow which adds back non-cash expenses such as depreciation and amortization to net income.

Why is cash flow per share important?

Since the cash flow per share takes into consideration a company’s ability to generate cash, it is regarded by some as a more accurate measure of a company’s financial situation than earnings per share. Cash flow per share represents the net cash a firm produces on a per-share basis.

What is a good eps?

Generally speaking, a “good” EPS should be a positive figure that has a long track record of consistent growth. As an example, a company’s earnings-per-share that has been growing substantially faster than its competitor’s EPS can be considered great.

What is a good free cash flow per share ratio?

As a general rule, P/FCF under 5 (or price is less than 5 times free cash flow per share) is considered “undervalued,” which means the stock may be trading at too low of a price and may rise in the future to properly reflect the free cash flow generated by the firm.

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How much cash per share does Apple have?

Apple FundamentalsReturn On Equity73.69 %Cash per Share5.35 XTotal Debt122.28 BDebt to Equity1.87 %Current Ratio1.36 XЕщё 32 строки

Is cash flow per share required to be reported?

Cash flow per share can be calculated by dividing cash flow earned in a given reporting period by the total number of shares outstanding during the same term. Because the number of shares outstanding can fluctuate, a weighted average is typically used. Hence, it is not required to be reported on any statement.

What is a good cash flow?

A higher ratio – greater than 1.0 – is preferred by investors, creditors, and analysts, as it means a company can cover its current short-term liabilities and still have earnings left over. Companies with a high or uptrending operating cash flow are generally considered to be in good financial health.

What goes into operating cash flow?

Operating cash flow represents the cash impact of a company’s net income (NI) from its primary business activities. … Using the indirect method, net income is adjusted to a cash basis using changes in non-cash accounts, such as depreciation, accounts receivable, and accounts payable (AP).

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