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

Test your knowledge using the equation and check your answer with the calculator above.

PCFR = P / CF = ?