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You find a company's price-to-cash flow ratio by dividing the market price of its stock by its cash receipts minus its cash payments over a given period of time, such as a year.
Some institutional investors prefer price-to-cash flow over price-to-earnings as a gauge of a company's value.
They believe that by focusing on cash flow, they can better assess the risks that may result from the company's use of leverage, or borrowed money.Yahoo Finance - Cite This Source - This Definition
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