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Price-to-Cash Flow (P/CF) Ratio

A stock valuation indicator used to assesses the value of a stock in relation to its operating cash flow per share. The operating cash flow (OCF) used in the ratio adds back non-cash expenditures like depreciation and amortization to net income. P/CF is particularly helpful for appraising firms with good cash flow but negative profitability due to significant non-cash charges.

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