Price-to-cash-flow ratio is a less-used fundamental valuation indicator. This valuation focuses on the amount of cash a company can pay to its shareholders in the form of a dividend.

To calculate price-to-cash-flow ratio, take the stock price and divide by the last reported yearly cash flow.

Price-to-cash-flow ratio is similar to that of P/E, and when using price-to-cash- flow ratio as a valuation tool, it is advisable to compare it only with companies in the same industry.

Also see:

• Book value
• Book value per share
• Debt to equity ratio
• EPS rank
• Price to book ratio (P/B)
• Price to dividend (P/D)
• Price to earnings (P/E)
• Price to sales ratio (P/S)
• Times interest earned