The Price to Free Cash Flow (P/FCF) ratio compares a company's market capitalization to its free cash flow. It measures how much investors are willing to pay for each dollar of free cash flow, the cash a company generates after expenses but before any debt payments or dividends. A lower P/FCF ratio may suggest that the stock is undervalued or the company generates significant cash relative to its market price. Investors often use this ratio to assess a company's financial health and ability to reinvest in its business or return value to shareholders.
