For companies, the market value divided by the cash flow as the net inflow of available funds and expressed per share. The KCV is widely regarded as a popular ratio for valuing a share. – The KCV is often considered to be more meaningful than the price-earnings ratio because the cash flow is subject to fewer accounting influences than is the case with earnings themselves, even under IFRS (because accounting laws on depreciation vary across jurisdictions, the price-tocash-flow ratio can allow investors to assess foreign companies from the same industry with a little more reliability). – Of course, there are also limitations to be considered here. In particular, it must be clarified whether and to what extent taxes and interest have been taken into account when reporting cash flow. – The average price/cash flow ratio for the broad stock market indices between 1980 and 2005 was 4.3 percent in Germany and 9.6 percent in the USA. – See analysis, technical, charts, CROCI, progress-to-return ratio, histogram, mapping, price range, traded, price-earnings ratio, price-sales ratio, wallflower, dash chart, dilution. – Cf. Deutsche Bundesbank Monthly Report of January 2010, p. 20 f. (problems in determining return on equity and return on sales).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/
Passende Formel
Investitionsrechnung
Kapitalwert, internen Zinssatz, Annuität und Vermögensendwert analysieren.
Formel vollständig öffnen