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Equal Energy Ltd (NYSE:EQU)
Price-to-Free-Cash-Flow Ratio
272.50 (As of Today)

As of today, Equal Energy Ltd's share price is \$5.45. Equal Energy Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2014 was \$0.02. Hence, Equal Energy Ltd's Price-to-Free-Cash-Flow Ratio for today is 272.50.

Equal Energy Ltd's Free Cash Flow per Share for the three months ended in Mar. 2014 was \$0.04. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2014 was \$0.02.

Definition

Equal Energy 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) = 5.45 / 0.02 = 272.50

Equal Energy Ltd's Share Price of today is \$5.45.
Equal Energy Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.014 (Jun. 2013 ) + -0.051 (Sep. 2013 ) + 0.013 (Dec. 2013 ) + 0.044 (Mar. 2014 ) = \$0.02.

* 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.

Equal Energy Ltd Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 pfcf 95.87 34.63 28.61 2.30 2.31 6.51 0.00 7.65 9.33 0.00

Equal Energy Ltd Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 pfcf 0.00 0.00 7.65 2.95 9.33 13.93 13.58 37.15 0.00 253.00
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