The Enterprise Value to Free Cash Flow Ratio, or EV / FCF Ratio, contrasts a company’s Enterprise Value relative to its Free Cash Flow. It is defined as Enterprise Value divided by Free Cash Flow. This is measured on a TTM basis.
Enterprise Value to Free Cash Flow compares the total valuation of the company with its ability to generate cashflow. It is the inverse of the Free Cash Flow Yield.
The lower the ratio of enterprise value to Free Cash Flow, the faster a company can pay back the cost of its acquisition or generate cash to reinvest in its business. Enterprise value is arguably a more accurate measure of the value of a firm, as it includes the debt, value of preferred shares and minority interest, but minus cash and cash equivalents. This is measured on a TTM basis.
| Ticker | Name | EV / FCF | StockRank™ |
|---|---|---|---|
| LON:N91 | Ninety One | -53.32 | 94 |
| LON:GIF | Gulf Investment Fund | -10.17 | 73 |
| LON:TCAP | TP Icap | -3.86 | 98 |
| LON:IHP | Integrafin Holdings | -2.79 | 73 |
| LON:MTRO | Metro Bank Holdings | -2.58 | 46 |