Price To Cash Flow Ratio

Price to cash flow ratio: The capitalized value of stock, divided by the cash flow of the company. This is calculated over a fiscal book year. It does not matter if the results are calculated over the entire company, or per share; the result should be the same. The cash flow shows how healthy a company is, in a financial way. A fiscal year however does not have to start on Jan 1^st, but can start anywhere in a year, for the duration of 12 months. It might be more convenient for a company to have their fiscal year start on a different date than Jan 1^st.