Price to free cash flow
Market capitalisation divided by free cash flow: how many years of that flow, on unchanged terms, would repay the price of the company.
Formula
The denominator is taken over a trailing year from the consolidated accounts. With a negative flow the measure is not calculated, because it loses meaning.
How to read the number
Stricter than price to earnings: cash flow is harder to draw with accounting choices.
When the metric lies
Also known as: p/fcf