The Price to Operating Cash Flow Ratio, or P / OCF Ratio, values a company against its Operating Cash Flow. It is the Share Price of the company divided by its Free Cash Flow per Share. This is measured on a TTM basis and uses diluted shares outstanding.
This is similar to the P/FCF measure but uses a looser measure of cash flow, called Operating Cash Flow, which does not deduct Capital Expenditures.
Operating Cash Flow, is the amount of actual cash made by a company's business.
It is similar to Operating Profit but it ignores the effect of non-cash items.
In general, the higher this measure, the more expensive the company.
There are several advantages that the P/FCF holds over other investment multiples - most notably the fact that, in contrast to Earnings, Sales or even Book Value, companies have a harder time manipulating cash flow.
This is measured on a TTM basis and uses diluted shares outstanding.
Ticker | Name | P / OCF | StockRank™ |
---|---|---|---|
LON:ARBB | Arbuthnot Banking | 0.26 | 76 |
LON:INDI | Indus Gas | 0.29 | 54 |
LON:LINV | Lendinvest | 0.37 | 59 |
LON:MTRO | Metro Bank Holdings | 0.40 | 46 |
LON:JZCP | JZ Capital Partners | 0.41 | 74 |