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Educational Development Corp (NAS:EDUC)
Price-to-Free-Cash-Flow Ratio
16.72 (As of Today)

As of today, Educational Development Corp's share price is $4.85. Educational Development Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in May. 2014 was $0.29. Hence, Educational Development Corp's Price-to-Free-Cash-Flow Ratio for today is 16.72.

EDUC' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 3.3   Max: 118.91
Current: 16.72

3.3
118.91

During the past 13 years, Educational Development Corp's highest Price-to-Free-Cash-Flow Ratio was 118.91. The lowest was 3.30. And the median was 12.98.

EDUC's Price-to-Free-Cash-Flow ratiois ranked higher than
78% of the 287 Companies
in the Global Publishing industry.

( Industry Median: 44.70 vs. EDUC: 16.72 )

Educational Development Corp's Free Cash Flow per Share for the three months ended in May. 2014 was $-0.14. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in May. 2014 was $0.29.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Educational Development Corp was 93.30% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -1.90% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 26.20% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was -8.60% per year.

During the past 13 years, Educational Development Corp's highest 3-Year average Free Cash Flow per Share Growth Rate was 51.80% per year. The lowest was -45.90% per year. And the median was 5.10% per year.


Definition

Educational Development Corp'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)
=4.85/0.29
=16.72

Educational Development Corp's Share Price of today is $4.85.
Educational Development Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in May. 2014 was -0.14 (Aug. 2013 ) + 0.32 (Nov. 2013 ) + 0.25 (Feb. 2014 ) + -0.14 (May. 2014 ) = $0.29.

* 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.

Educational Development Corp Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
pfcf 11.8227.7612.009.193.4161.009.1527.5624.445.51

Educational Development Corp Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
pfcf 27.5613.3617.2721.4424.4423.6713.358.245.5113.27
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