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Dell Inc (NAS:DELL)
Price-to-Free-Cash-Flow Ratio
6.31 (As of Today)

As of today, Dell Inc's share price is \$13.86. Dell Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jul. 2013 was \$2.20. Hence, Dell Inc's Price-to-Free-Cash-Flow Ratio for today is 6.31.

Dell Inc's Free Cash Flow per Share for the three months ended in Jul. 2013 was \$0.86. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jul. 2013 was \$2.20.

Definition

Dell 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) = 13.86 / 2.197 = 6.31

Dell Inc's Share Price of today is \$13.86.
Dell Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jul. 2013 was 0.701 (Oct. 2012 ) + 0.75 (Jan. 2013 ) + -0.112 (Apr. 2013 ) + 0.858 (Jul. 2013 ) = \$2.20.

* 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

Historical Data

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

Dell Inc Annual Data

 Jan04 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 pfcf 26.33 20.17 17.87 17.81 14.42 13.01 7.17 7.27 6.55 8.38

Dell Inc Quarterly Data

 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 pfcf 8.23 6.63 6.64 6.55 7.12 8.43 5.25 8.38 8.22 5.75
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