Price To Cash Flow Ratio Essential Guide to Valuation TTM Analysis
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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 (OCF), which adds back non-cash expenses such as depreciation and amortization to net income.P/CF is especially useful for valuing stocks that have positive cash flow but are not profitable because of large non-cash charges.
