what is the price to cash flow p cf ratio 
the price to cash flow p cf ratio is a stock valuation indicator or multiple that measures the value of a stock s price relative to its operating cash flow per share the ratio uses operating cash flow ocf which adds back non cash expenses such as depreciation and amortization to net income p cf is especially useful for valuing stocks that have positive cash flow but are not profitable because of large non cash charges investopedia jiaqi zhouthe formula for the price to cash flow p cf ratio is price to cash flow ratio share price operating cash flow per share text price to cash flow ratio frac text share price text operating cash flow per share price to cash flow ratio operating cash flow per shareshare price in order to avoid volatility in the multiple a 30 or 60 day average price can be utilized to obtain a more stable stock value that is not skewed by random market movements the operating cash flow ocf used in the denominator of the ratio is obtained through a calculation of the trailing 12 month ttm ocfs generated by the firm divided by the number of shares outstanding in addition to doing the math on a per share basis the calculation can also be done on a whole company basis by dividing a firm s total market value by its total ocf 