Price/Free Cash Flow (PFCF)

FreightWaves Customer SuccessRetired Indices

What is it?

A company’s stock price (or market capitalization) divided by its free cash flow per share (or free cash flow).

Who is interested?

The financial community and investors.

What does it tell me?

Price to Free Cash Flow measures how much investors are paying for each dollar of free cash flow generated. This metric can be compared to other companies and the company itself historically to determine whether the valuation is trading at a discount or premium.