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Herbalife Ltd (NYSE:HLF)
Price-to-Free-Cash-Flow Ratio
11.20 (As of Today)

As of today, Herbalife Ltd's share price is $67.77. Herbalife Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2014 was $6.10. Hence, Herbalife Ltd's Price-to-Free-Cash-Flow Ratio for today is 11.20.

HLF' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 3.83   Max: 37.5
Current: 11.2

3.83
37.5

During the past 11 years, Herbalife Ltd's highest Price-to-Free-Cash-Flow Ratio was 37.50. The lowest was 3.83. And the median was 14.32.

HLF's Price-to-Free-Cash-Flow ratiois ranked higher than
91% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 51.08 vs. HLF: 11.20 )

Herbalife Ltd's Free Cash Flow per Share for the three months ended in Mar. 2014 was $1.31. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2014 was $6.10.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Herbalife Ltd was 50.60% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 31.90% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 31.80% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 28.50% per year.

During the past 11 years, Herbalife Ltd's highest 3-Year average Free Cash Flow per Share Growth Rate was 42.70% per year. The lowest was 2.60% per year. And the median was 29.05% per year.


Definition

Herbalife 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)
=67.77/6.1
=11.11

Herbalife Ltd's Share Price of today is $67.77.
Herbalife Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.71 (Jun. 2013 ) + 1.76 (Sep. 2013 ) + 1.32 (Dec. 2013 ) + 1.31 (Mar. 2014 ) = $6.10.

* 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.

Herbalife Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
pfcf 36.9321.1224.4912.757.7411.3313.5115.388.6913.50

Herbalife Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
pfcf 15.3819.6113.7713.248.699.259.4812.8313.509.39
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