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

As of today, Red Hat Inc's share price is $72.93. Red Hat Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Feb. 2016 was $3.55. Hence, Red Hat Inc's Price-to-Free-Cash-Flow Ratio for today is 20.56.

RHT' s Price-to-Free-Cash-Flow ratio Range Over the Past 10 Years
Min: 9.6   Max: 42.13
Current: 20.56

9.6
42.13

During the past 13 years, Red Hat Inc's highest Price-to-Free-Cash-Flow Ratio was 42.13. The lowest was 9.60. And the median was 26.60.

RHT's Price-to-Free-Cash-Flow ratio is ranked higher than
55% of the 642 Companies
in the Global Software - Application industry.

( Industry Median: 22.61 vs. RHT: 20.56 )

Red Hat Inc's Free Cash Flow per Share for the three months ended in Feb. 2016 was $1.23. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Feb. 2016 was $3.55.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Red Hat Inc was 17.90% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 20.30% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 21.10% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 17.30% per year.

During the past 13 years, Red Hat Inc's highest 3-Year average Free Cash Flow per Share Growth Rate was 45.80% per year. The lowest was 0.00% per year. And the median was 15.40% 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)
=72.93/3.547
=20.56

Red Hat Inc's Share Price of today is $72.93.
Red Hat Inc's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Feb. 2016 was 1.043 (May. 2015 ) + 0.578 (Aug. 2015 ) + 0.693 (Nov. 2015 ) + 1.233 (Feb. 2016 ) = $3.55.

* 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

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
pfcf 27.3825.3614.1024.4333.0228.5228.8225.5722.9718.42

Red Hat Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
pfcf 25.5719.7823.7622.4222.9723.8521.6623.9818.420.00
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