Enter the total price of the asset ($) and the total cash-flow generated by the asset ($) into the Price to Cash Flow Ratio Calculator. The calculator will evaluate and display the Price to Cash Flow Ratio.

## Price to Cash Flow Ratio Formula

The following formula is used to calculate the Price to Cash Flow Ratio.

PCFR = P / CF

• Where PCFR is the Price to Cash Flow Ratio ( )
• P is the total price of the asset ($) • CF is the total cash-flow generated by the asset ($)

## How to Calculate Price to Cash Flow Ratio?

The following example problems outline how to calculate Price to Cash Flow Ratio.

Example Problem #1:

1. First, determine the total price of the asset ($). • The total price of the asset ($) is given as: 100,000.
2. Next, determine the total cash-flow generated by the asset ($). • The total cash-flow generated by the asset ($) is provided as: 5,000.
3. Finally, calculate the Price to Cash Flow Ratio using the equation above:

PCFR = P / CF

The values given above are inserted into the equation below and the solution is calculated:

PCFR = 100,000 / 5,000 = 20.00

Example Problem #2:

For this problem, the variables required are provided below:

total price of the asset ($) = 60,000 total cash-flow generated by the asset ($) = 10,000