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Primus Guaranty Ltd (OTCPK:PRSG)
Price-to-Free-Cash-Flow
0.14 (As of Today)

As of today, Primus Guaranty Ltd's share price is \$0.11. Primus Guaranty Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2011 was \$0.76. Hence, Primus Guaranty Ltd's Price-to-Free-Cash-Flow Ratio for today is 0.14.

Primus Guaranty Ltd's Free Cash Flow per Share for the three months ended in Dec. 2011 was \$0.33. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2011 was \$0.76.

Definition

Primus Guaranty 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) = 0.11 / 0.759 = 0.14

Primus Guaranty Ltd's Share Price of today is \$0.11.
Primus Guaranty Ltd's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2011 was -0.2 (Mar. 2011 ) + 0.201 (Jun. 2011 ) + 0.427 (Sep. 2011 ) + 0.331 (Dec. 2011 ) = \$0.76.

* 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

Historical Data

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

Primus Guaranty Ltd Annual Data

 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 pfcf 0.00 0.00 20.16 15.72 12.03 4.70 0.00 0.00 0.00 6.28

Primus Guaranty Ltd Quarterly Data

 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 pfcf 0.00 0.00 0.00 0.00 0.00 0.00 6.20 4.49 3.47 6.28
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