EV/Cash-Flow

Main formula: EV / CFO

Similarly it can be used the Formula: Enterprise-Value/EBITDA

Although the CFO is a more reilable metric of the cash flow generated by the operating activities of the business. 

Definition:
Measures firm value relative to operating profitability before: Interest, Taxes, Depreciation&Amortization (D&A)

Interpretation:

Most widely used valuation multiple

Proxy for operating cash flow

📌 Removes: Financing distortions, Tax differences, Depreciation policies

Common in: Private equity, M&A, Credit analysis