Hide

FocusBar

Subscribe to Premium Member
Switch to:

Navistar International Corp Price-to-Free-Cash-Flow ratio: 11.6 ( as of Today)

* All numbers are in millions except for per share data NAV 10-Y Financials »

Definition

Price-to-Free-Cash-Flow ratio is calculated as follows:

Price-to-Free-Cash-Flow = Share Price / Free Cash Flow per Share

Or

Price-to-Free-Cash-Flow = Market Cap / Free Cash Flow

Free Cash Flow is calculated as:

Free Cash Flow per Share

= (Cash Flow from Operations + Change in Property, Plant and Equipment).

= Net Income + Depreciation, Depletion and Amortization - Change in Net Working Capital - Capital Expenditure.

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.

Beaware

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

P/S Ratio, P/B Ratio, P/E Ratio, Free Cash Flow
* All numbers are in millions except for per share data

Navistar International Corp Annual Data

This information is for Premium Members Only.


Take the full advantage of Gurus' investment ideas now.

7-Day Free Trial
Oct03Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12
pfcfPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member Only
Navistar International Corp Quarterly Data

This information is for Premium Members Only.


Take the full advantage of Gurus' investment ideas now.

7-Day Free Trial
Jul10Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12
pfcfPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member OnlyPremium Member Only

Financial Dictionary

GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names
Free 7-day Trial
FEEDBACK