Value Factors

Price-to-Cash flow

This ratio compares the share price of the company to how much cash it's generating per share.

Formula:

Price-to-Cash flow Ratio = Market Cap Cash Flow from Operations

This ratio is used as one of the components in O'Shaugnessy's VC1, VC2 and VC3 factors.


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In our glossary:

  • O'Shaughnessy VC1

    Value Composite One (VC1) is a composite factor introduced by James O'Shaughnessy in the 4th edition of his book 'What Works on Wall Street'. more...
  • O'Shaughnessy VC2

    Value Composite Two (VC2) is an adaptation of the VC1 factor described above. more...
  • O'Shaughnessy VC3

    Value Composite Three (VC3) is another adaptation of O'Shaughnessy's value composite but here he combines the factors used in VC1 with buyback yield. more...