Financial ratios

Price-to-cash flow ratio

The price/cash flow ratio (also called price-to-cash flow ratio or P/CF), is a ratio used to compare a company's market value to its cash flow. It is calculated by dividing the company's market cap by the company's operating cash flow in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share stock price by the per-share operating cash flow. In theory, the lower a stock's price/cash flow ratio is, the better value that stock is. For example, if the stock price for two companies is $25/share and one company has a cash flow of $5/share (25⁄5=5) and the other company has a cash flow of $10/share (25⁄10=2.5), then if all else is equal, the company with the higher cash flow (lower ratio, P/CF=2.5) has the better value. A high P/CF ratio indicated that the specific firm is trading at a high price but is not generating enough cash flows to support the multiple—sometimes this is OK, depending on the firm, industry, and its specific operations. Smaller price ratios are generally preferred, as they may reveal a firm generating ample cash flows that are not yet properly considered in the current share price.Holding all factors constant, from an investment perspective, a smaller P/CF is preferred over a larger multiple. CFPS = (NI + Depreciation + Amortization)/ Common Shares Outstanding (Wikipedia).

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Liquidity Ratios - Current Ratio and Quick Ratio (Acid Test Ratio)

This finance video tutorial provides a basic introduction into two liquidity ratios - the current ratio and the quick ratio also known as the acid test ratio. The current ratio is equal to the current assets divided by the current liabilities. A current ratio that is greater than 1 means

From playlist Stocks and Bonds

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Dividends - Payout Ratio vs Retention Ratio

This stocks and bonds video tutorial explains how to calculate the dividend payout ratio and the retention ratio. The payout ratio is equal to the total dividends paid divided by the net income. The retention ratio is equal to the earnings retained divided by the net income. My Website:

From playlist Stocks and Bonds

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Volume Flow Rate & Mass Flow Rate - Fluid Dynamics Physics Problems

This physics video tutorial provides a basic introduction into mass flow rate and volume flow rate. The mass flow rate is the change in mass per unit time. It is also equal to the product of the fluid density, cross sectional area and the speed of the fluid in a pipe. The volume flow ra

From playlist New Physics Video Playlist

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Ex: Equilibrium Point

This video shows an example of how to determine the point of equilibrium given the supply and demand functions. Complete Video Library at www.mathispower4u.com

From playlist Business Applications of Integration

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Equilibrium Point

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From playlist Applications of Definite Integration

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Ex: Find the Sale Tax Percentage

This video explains how to determine the sales tax percent given the amount paid and the sale price. Search Complete Library at http://www.mathispower4u.wordpress.com

From playlist Percent Applications

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Ratios

This video defines a ratio and provides several examples on how to write a ratio and shows how to simplify a ratio. http://mathispower4u.wordpress.com/

From playlist Ratios and Rates

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Beta is one measure with many faces

Beta is covariance (x,y)/variance(y). It has many applications. Including, for example, the minimum hedge ratio for a future hedge on a commodity, the capital asset pricing model (CAPM), cash flow beta, and marginal value at risk (marginal VaR).

From playlist Intro to Quant Finance

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Example: Determine the Best Buy Using Unit Rate

This video determines the cost of an item per ounce to determine the best buy using unit rate. Complete Video List at http://www.mathispower4u.com

From playlist Ratios and Rates

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Applied Portfolio Management - Class 3 - Equity Investment Management

All slides are available on my Patreon page: https://www.patreon.com/PatrickBoyleOnFinance In todays video we learn about equity investment management. We learn about how a portfolio manager builds a portfolio. We learn about the efficient market hypothesis, macroeconomic analysis, the

From playlist Applied Portfolio Management

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PEG Ratio vs Price To Earnings (P/E) Ratio

This video explains how to calculate the price to earnings growth (PEG) ratio and compares it with the price to earnings (P/E) ratio to help determine if a company may be undervalued or overvalued. My Website: https://www.video-tutor.net Patreon Donations: https://www.patreon.com/MathSc

From playlist Stocks and Bonds

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Highline Excel 2016 Class 04: References: Relative, Absolute, Mixed, Sheet, Workbook, 3-D, Table…

Download Files: https://people.highline.edu/mgirvin/AllClasses/218_2016/218Excel2016.htm In this video learn about: (00:04) Download Files (00:30) Introduction to types of References 1. (01:38) Example 1: Not Copying Formula. Goal: Calculate Net Income. 2. (02:09) Example 2: Not Copying Fo

From playlist Excel Advanced Free Course at YouTube. Comprehensive Excel 2016: Calculations & Data Analysis (27 Videos)

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Lecture 14: Real and Financial Flows: Thailand

MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2

From playlist MIT 14.04 Intermediate Microeconomic Theory, Fall 2020

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9. Yield Curve Arbitrage

Financial Theory (ECON 251) Where can you find the market rates of interest (or equivalently the zero coupon bond prices) for every maturity? This lecture shows how to infer them from the prices of Treasury bonds of every maturity, first using the method of replication, and again using

From playlist Financial Theory with John Geanakoplos

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How To Calculate The Risk Reward Ratio, Break Even Win Rate, & Expectancy of a Stock Trading System

This video explains how to calculate the risk reward ratio of a trade, how to calculate the minimum win rate or probability of winning in order to break even and the amount you expect to earn per trade on average relative to the amount at risk which is equivalent to the expectancy of a sto

From playlist Stocks and Bonds

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Valuation Modelling | Financial Modelling Training | Financial Modelling Tutorial | Simplilearn

🔥 Explore Best Courses By Simplilearn: https://www.simplilearn.com/?utm_campaign=ValuationModeling-y0t4uw0FWI4&utm_medium=DescriptionFirstFold&utm_source=youtube Basic valuation techniques are as follows 1. Past performance: Past performance informs us on the historical average level of t

From playlist Microsoft Excel Tutorial Videos 🔥[2022 Updated]

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