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BHP Billiton Ltd (NYSE:BHP)
Price-to-Free-Cash-Flow Ratio
16.65 (As of Today)

As of today, BHP Billiton Ltd's share price is $55.45. BHP Billiton Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.33. Hence, BHP Billiton Ltd's Price-to-Free-Cash-Flow Ratio for today is 16.65.

BHP' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 10.18   Max: 42.88
Current: 18.1

10.18
42.88

During the past 13 years, BHP Billiton Ltd's highest Price-to-Free-Cash-Flow Ratio was 42.88. The lowest was 10.18. And the median was 25.14.

BHP's Price-to-Free-Cash-Flow ratiois ranked higher than
95% of the 2726 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 9999.00 vs. BHP: 18.10 )

BHP Billiton Ltd's Free Cash Flow per Share for the six months ended in Jun. 2014 was $2.19. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.33.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was -17.00% per year.

During the past 13 years, BHP Billiton Ltd's highest 3-Year average Free Cash Flow per Share Growth Rate was 69.40% per year. The lowest was -35.20% per year. And the median was 13.70% per year.


Definition

BHP Billiton Ltd'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)
=55.45/3.33
=16.65

BHP Billiton Ltd's Share Price of today is $55.45.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BHP Billiton Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.33.

* 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.

BHP Billiton Ltd Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
pfcf 19.1128.4322.3126.4819.6225.7914.1734.940.0020.28

BHP Billiton Ltd Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
pfcf 0.0025.790.0014.170.0034.940.000.000.0020.28
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