What does a negative market to cash ratio mean, and what does a price to cash ratio mean

There are two kinds of price-to-present ratio PCF, one is the operating cash flow corresponding to the stock price per share, and the other is the free cash flow per share.

To understand this question, it is necessary to understand why this indicator is chosen: cash flow is more responsive to the fundamentals of a company than the income statement, and it is a better indicator of the profitability value of the company. Theoretically, the most reasonable measure of a company's intrinsic value is the discounted future cash flow.

The expression of economics is the DCF model.

However, the DCF model is not easy to use, at least it is not simple and clear enough (please refer to my article Thoughts on the DCF Model). However, the concept of free cash flow (FCF) captures the key to business valuation. As a result, some people proposed to divide the **** by free cash flow to value the enterprise.

No way. The price-to-present ratio is the ratio of **** to cash flow per share.

The price-to-present ratio cannot be negative, if a company's operation is not good, its price-to-present ratio will increase, that is, its cash flow per share will decrease with the company's poor operation, so it is a listed company, and the price-to-present ratio cannot be negative.

Price-to-Present RateIt refers to **** and per shareCash flowVolume ratio, price-to-present ratio = stock price cash flow per share.

The lower the price-to-present ratio, the greater the increase in cash per share of the listed company, the lower the operating pressure.

Each industry's demand for cash flow is different, and there is no absolute standard for the level of the market-to-cash ratio.

If the number of turnovers is high, the requirements for cash flow are relatively high, and the lower the price-to-cash ratio, the better.

If the main slippery attack assets to fixed assets.

Mainly, the demand for cash flow is not large, and the higher the price-to-present ratio of such enterprises, the better.

When investing**, you can use the price-to-present ratio as a secondary reference indicator.

The price-to-present ratio is the ratio of **** to cash flow per share. The price-to-present ratio can be used to evaluate the level of risk and risk. The smaller the price-to-present ratio, the more cash per share increase the listed company has, the less operating pressure.

For investment institutions participating in capital operation, the price-to-present ratio also means the efficiency of increasing their working capital.

Price-to-Present Ratio: The ratio of **** to cash flow per share.

The price-to-present ratio refers to the ratio of the cash flow generated by the core business of the enterprise after deducting capital expenditure to the current market value, that is to say, we use the price-to-present rate to evaluate the main purpose of examining the cash flow of a company, and then make a calculation of its cash flow and the current stock price. If the price-to-cash ratio is relatively low, then it means that the company is currently operating averagely, and if the stock price is high, we can sell it appropriately at present.

In general, a company's cash flow is more difficult to manipulate, and at the same time, it can be closer to the company's fundamentals than a balance sheet. Therefore, we calculate the cash flow generated by the company's core business after deducting capital expenditures separately, so that we can more accurately measure the company's operating performance and reflect the cash available to the company. Of course, the cash flow of companies in different industries is absolutely different, so when we compare two companies with the price-to-cash ratio, we must choose the same industry.

In addition, the price-to-present ratio of cyclical industries is often volatile, so some industries with negative to positive price-to-present ratios mean that their cash flow has become more abundant. There are also some sectors that have seen a decline in the price-to-present ratio, which means that the valuation level of these industries may have decreased, or the cash flow level has increased, without taking into account other conditions, and we need to take a closer look at the specific changes.

Price-to-Present Ratio: The ratio of **** to cash flow per share.

1. If the price-to-present ratio is negative, then it means that the company has no cash flow, and its free cash has been converted into debt or loss.

2. Under normal circumstances, the smaller the price-to-cash ratio, the more cash per share of the listed company increases, and the less operating pressure. However, once it becomes negative, then it means that the cash increase per share of the listed company is negative, and the company itself is currently showing a certain level of loss.

3. The cash flow calculated in the price-to-present ratio is the maximum amount of cash that can be allocated to the creditor and the debtor without affecting the normal operation and development of the enterprise. From the investor's point of view, this part of the amount is the real value created by the company for the investor. Once this value is negative, it is very obvious that there has been a change in the company's current operations.

However, we should also note that the price-to-cash ratio indicator is not suitable for companies or industries with large capital expenditures.

4. In addition, if a company is in investment or financing activities, it will also produce a certain degree of cash flow changes, and we should also consider this change when calculating the price-to-cash ratio. For example, if there is no problem with a company's main business investment, but the recent negative cash due to the loss of the investment base, we cannot completely deny that the company's quality has deteriorated.

The price-to-present ratio is the ratio of **** to cash flow per share, as far as I am concerned, the price-to-present ratio cannot be negative, if the operation of a company is not good, its price-to-present ratio will increase, that is, its cash flow per share will decrease with the company's poor operation, so it is a listed company, and the price-to-present ratio cannot be negative.

The price-to-present ratio is the average net cash flow per share of **market capitalization per share.

If you don't understand it, you can refer to the P/E ratio, which is calculated in a similar way, and the main meaning is that the net cash flow (possibly negative) obtained per share** should be proportional to the P/E ratio. If the P/E ratio is positive and the P/E ratio is negative, there must be a problem with the company or a significant investment or financing.

The price-to-present ratio is the ratio of **** to cash flow per share, as far as I am concerned, the price-to-present ratio cannot be negative, if the operation of a company is not good, its price-to-present ratio will increase, that is, its cash flow per share will decrease with the company's poor operation, so it is a listed company, and the price-to-present ratio cannot be negative.