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.
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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:
- First, determine the total price of the asset ($).
- The total price of the asset ($) is given as: 100,000.
- Next, determine the total cash-flow generated by the asset ($).
- The total cash-flow generated by the asset ($) is provided as: 5,000.
- 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 = ?
