Equity Analysis: Price to Cash Flow Ratio (P/CFPS)
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Equity Analysis: Price to Cash Flow Ratio (P/CFPS)

Updated Jul 18, 2024

What you'll learn

  • Here we look at how to calculate and interpret the P/CFPS ratio, and look at the benefits and drawbacks of the method.
Course Description

The P/CFPS ratio compares a company's stock price with its cash flow per share. A high ratio may indicate the stock is overvalued. Here we look at how to calculate and interpret the P/CFPS ratio, and look at the benefits and drawbacks of the method.