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Merus Labs International Inc (NAS:MSLI)
Price-to-Free-Cash-Flow Ratio
7.31 (As of Today)

As of today, Merus Labs International Inc's share price is $1.95. Merus Labs International Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $0.28. Hence, Merus Labs International Inc's Price-to-Free-Cash-Flow Ratio for today is 7.31.

MSLI' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 1.39   Max: 43
Current: 7.31

1.39
43

During the past 13 years, Merus Labs International Inc's highest Price-to-Free-Cash-Flow Ratio was 43.00. The lowest was 1.39. And the median was 5.08.

MSLI's Price-to-Free-Cash-Flow ratiois ranked higher than
99% of the 962 Companies
in the Global Biotechnology industry.

( Industry Median: 9999.00 vs. MSLI: 7.31 )

Merus Labs International Inc's Free Cash Flow per Share for the three months ended in Jun. 2014 was $0.05. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $0.28.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Merus Labs International Inc was -9.40% per year.

During the past 13 years, Merus Labs International Inc's highest 3-Year average Free Cash Flow per Share Growth Rate was 246.30% per year. The lowest was -57.70% per year. And the median was 46.10% per year.


Definition

Merus Labs International 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)
=1.95/0.28
=6.96

Merus Labs International Inc's Share Price of today is $1.95.
Merus Labs International Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.08 (Sep. 2013 ) + 0.08 (Dec. 2013 ) + 0.07 (Mar. 2014 ) + 0.05 (Jun. 2014 ) = $0.28.

* 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.

Merus Labs International Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
pfcf 260.0040.507.780.003.702.270.000.008.064.38

Merus Labs International Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
pfcf 7.7211.868.06115.009.002.564.384.295.228.34
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