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Aetna Inc (NYSE:AET)
Price-to-Free-Cash-Flow Ratio
15.66 (As of Today)

As of today, Aetna Inc's share price is $116.86. Aetna Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2015 was $7.46. Hence, Aetna Inc's Price-to-Free-Cash-Flow Ratio for today is 15.66.

AET' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 4.49   Max: 29.57
Current: 15.66

4.49
29.57

During the past 13 years, Aetna Inc's highest Price-to-Free-Cash-Flow Ratio was 29.57. The lowest was 4.49. And the median was 12.85.

AET's Price-to-Free-Cash-Flow ratiois ranked lower than
60% of the 20 Companies
in the Global Health Care Plans industry.

( Industry Median: 14.67 vs. AET: 15.66 )

Aetna Inc's Free Cash Flow per Share for the three months ended in Jun. 2015 was $0.43. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2015 was $7.46.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Aetna Inc was -17.00% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 14.20% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 13.70% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 13.90% per year.

During the past 13 years, Aetna Inc's highest 3-Year average Free Cash Flow per Share Growth Rate was 114.30% per year. The lowest was 0.00% per year. And the median was 13.10% per year.


Definition

Aetna Inc's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=116.86/7.46
=15.66

Aetna Inc's Share Price of today is $116.86.
Aetna Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 2.57 (Sep. 2014 ) + 0.52 (Dec. 2014 ) + 3.94 (Mar. 2015 ) + 0.43 (Jun. 2015 ) = $7.46.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Aetna Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
pfcf 24.1817.4118.337.966.7011.437.5110.9013.8010.68

Aetna Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
pfcf 17.2723.1112.7013.8010.379.028.9110.6812.3617.09
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