Business and Personal Finance Dictionary

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• PRICE-TO-CASH FLOW
  
  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.
  
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