Switch to:
PMC-Sierra Inc (NAS:PMCS)
Price-to-Free-Cash-Flow Ratio
36.29 (As of Today)

As of today, PMC-Sierra Inc's share price is $11.65. PMC-Sierra Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2015 was $0.32. Hence, PMC-Sierra Inc's Price-to-Free-Cash-Flow Ratio for today is 36.29.

PMC-Sierra Inc's Free Cash Flow per Share for the three months ended in Sep. 2015 was $0.05. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2015 was $0.32.


Definition

PMC-Sierra 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)
=11.65/0.321
=36.29

PMC-Sierra Inc's Share Price of today is $11.65.
PMC-Sierra Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2015 was 0.123 (Dec. 2014 ) + 0.015 (Mar. 2015 ) + 0.131 (Jun. 2015 ) + 0.052 (Sep. 2015 ) = $0.32.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

PMC-Sierra Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
pfcf 32.2781.8319.4615.6317.5312.889.5852.6322.4024.62

PMC-Sierra Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
pfcf 28.2724.9822.4027.6724.7119.1824.6226.2123.5821.09
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK