# Price/Cash flow Ratio

## Price/Cash flow Ratio

The price/cash flow ratio is a ratio used by investors to compare a company’s market value to its cash flow. It is calculated as follows:

This ratio considers cash flows only and removes the effect of non cash items like depreciation. It is calculated by dividing market value of a share to operating cash flow that company generates per share. Operating cash flow per share is calculated as follows:

**NEXT – Market Test Ratios: Price to book value Ratio**

**Table of Contents 1) Market Test Ratios: Introduction 2) Market Test Ratios: Earning per Share Ratio 3) Market Test Ratios: P/E Ratio 4) Market Test Ratios: Payout Ratio 5) Market Test Ratios: Dividend Yield Ratio 6) Market Test Ratios: Price/Cash flow Ratio 7) Market Test Ratios: Price to book value Ratio 8) Market Test Ratios: Price/Sales Ratio 9) Market Test Ratios: Price/Earnings To Growth Ratio**