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Red Hat Inc (NYSE:RHT)
Price-to-Free-Cash-Flow Ratio
24.30 (As of Today)

As of today, Red Hat Inc's share price is $61.37. Red Hat Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in May. 2014 was $2.52. Hence, Red Hat Inc's Price-to-Free-Cash-Flow Ratio for today is 24.30.

RHT' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 9.62   Max: 170.75
Current: 24.3

9.62
170.75

During the past 13 years, Red Hat Inc's highest Price-to-Free-Cash-Flow Ratio was 170.75. The lowest was 9.62. And the median was 27.70.

RHT's Price-to-Free-Cash-Flow ratiois ranked higher than
79% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. RHT: 24.30 )

Red Hat Inc's Free Cash Flow per Share for the three months ended in May. 2014 was $0.81. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in May. 2014 was $2.52.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Red Hat Inc was 40.00% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 23.00% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 19.10% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 16.20% per year.

During the past 13 years, Red Hat Inc's highest 3-Year average Free Cash Flow per Share Growth Rate was 52.80% per year. The lowest was 0.00% per year. And the median was 13.55% per year.


Definition

Red Hat 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)
=61.37/2.52
=24.35

Red Hat Inc's Share Price of today is $61.37.
Red Hat Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in May. 2014 was 0.45 (Aug. 2013 ) + 0.42 (Nov. 2013 ) + 0.84 (Feb. 2014 ) + 0.81 (May. 2014 ) = $2.52.

* 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.

Red Hat Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
pfcf 22.4933.1727.0525.4713.9724.3933.2928.5928.8725.76

Red Hat Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
pfcf 28.5927.4830.4628.2328.8726.7925.9123.0825.7619.89
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