Financial Glossary  
           
 Glossary Tutorials Articles About Advertise Contact
Browse the largest investing glossary online.   Search
A
1|2|3
B
1|2
C
1|2|3
D
1|2|3
E
1|2|3
F
1|2|3
G
1|2|3
H
1|2|3
I
1|2|3
J
1|2
K
1|2|3
L
1|2|3
M
1|2|3
 
N
1|2|3
O
1|2|3
P
1|2|3
Q
1|2
R
1|2|3
S
1|2|3
T
1|2|3
U
1|2|3
V
1|2|3
W
1|2
X
1|2
Y
1|2|3
Z
1|2
#
1|2

 
Include Definitions
(more results)
Browse by Category
 
Investing / Investments
Real estate investing
Stock investing
Investment management
Retirement investing
Bonds / bond funds
Mutual Funds
 
Personal Finance
Business and finance
Household finance
Mortgage
Finance dictionary
Corporate finance
Financial service
Money management
Estate planning
Loans
 
Stock Market Investing
Stock research
Stock trading
Stock options
Stock trading
Stock exchanges
 
 
InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Price/Cash Flow Ratio  

Definition 1.

The closing price divided by cash flow per share from the last 12 months. An alternative to the P/E ratio, this one removes depreciation and other non-cash charges from the equation, and can be especially useful in businesses with huge depreciation expenses, such as the cable TV industry. Price/cash flow is also often used to analyze companies in cyclical industries such as automobiles, steel and paper. Like the P/E ratio, Price/Cash Flow should not be considered in a vacuum, but rather in comparison with similar companies.Another advantage of Price/Cash flow is that it makes it easier to analyze various companies across borders. Depreciation and other issues are treated in different ways under different national accounting rules, making earnings-based ratios problematic. Looking at cash flow can help eliminate such problems and make comparisons more meaningful.
 
  Home | Glossary | Tutorials | Articles | About
Webmasters |Advertise | Contact | Privacy


All material Copyright InvestHub.com and IAT Inc., 2003-2014