Price/cash flow ratio
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Price/cash flow ratio is a ratio calculated by dividing price per share by cash flow per share. This shows how much investors are willing to pay per dollar of cash flow.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Price/cash flow ratio. Calculated by dividing price per share by cash flow per share. This shows how much investors are willing to pay per dollar of cash flow.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
