หมวดคำศัพท์

Price-to-Cash Flow (P/CF)

A financial ratio calculated as current share price divided by cash flow per share - where cash flow is the spending and receiving of cash in a business. For example, a P/CF of 10 indicates that for each £1 that flows through that company, the stock price is £10. Optimal P/CF ratios differ from industry to industry. P/CF ratios will be much lower in capital-intensive industries than in ones such as software.