The Price to Cash Flow (P/CF) Ratio compares a company's market price to its cash flow per share. It helps investors assess whether a stock is undervalued or overvalued based on the company's ability to generate cash. A lower P/CF ratio can indicate that the stock is relatively cheap compared to its cash flow, while a higher ratio might suggest the stock is expensive. The ratio helps evaluate companies with significant depreciation or amortization, focusing on actual cash generation rather than accounting-based profits.
