Price-to-Cash Flow (P/CFO)

Andre Tester Market-based ratios Also available:

Price-to-Cash Flow (P/CFO)

Formula:
Market Capitalization / Operating Cash Flow

Definition:
Measures how much investors pay per dollar of operating cash flow.

Interpretation:

Less sensitive to accounting distortions

Better for cash-intensive industries

📌 Still influenced by: Interest paid (if CFO includes it) and the financing structure D/E.