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AppleNVIDIABerkshireMetrics guide
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Metrics guide›Size and valuation

Price/Operating cash flow

Market cap divided by a year of operating cash flow: what you pay for the cash the business brings in before capital spending.

Worked example · a round-number company

Market cap$10.0B÷Operating cash flow$1.2B=P/OCF8.3x

How to read it

↓Lower is better. Harder to flatter than P/E, since cash is harder to dress up than profit.

Keep in mind

  • Ignores capital spending; P/FCF subtracts it.

Related

Price/Free cash flow (P/FCF)Operating cash flow