B
Glossary
Price-to-Free-Cash-Flow
Also: P/FCF
Important — standard screening
What it measures
Price vs the spare cash generated per share. Built from cash that actually moved rather than reported profit, so it is harder to flatter with accounting choices.
Formula
Share Price ÷ Free Cash Flow per shareBenchmark
compare with the same company's P/E
Related metrics
Source
McKinsey, Valuation (7th ed.) ch. 12