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GuruFocus has detected 3 Warning Signs with Nielsen Holdings PLC $NLSN.
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Nielsen Holdings PLC (NYSE:NLSN)
Price-to-Free-Cash-Flow
17.13 (As of Today)

As of today, Nielsen Holdings PLC's share price is $38.54. Nielsen Holdings PLC's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2017 was $2.25. Hence, Nielsen Holdings PLC's Price-to-Free-Cash-Flow Ratio for today is 17.13.

NLSN' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 17.07   Max: 54.52
Current: 17.13

17.07
54.52

During the past 9 years, Nielsen Holdings PLC's highest Price-to-Free-Cash-Flow Ratio was 54.52. The lowest was 17.07. And the median was 26.83.

NLSN's Price-to-Free-Cash-Flow is ranked higher than
57% of the 326 Companies
in the Global Business Services industry.

( Industry Median: 20.27 vs. NLSN: 17.13 )

Nielsen Holdings PLC's Free Cash Flow per Share for the three months ended in Mar. 2017 was $-0.21. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2017 was $2.25.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Nielsen Holdings PLC was 6.40% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 19.90% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 24.90% per year.

During the past 9 years, Nielsen Holdings PLC's highest 3-Year average Free Cash Flow per Share Growth Rate was 32.30% per year. The lowest was 10.70% per year. And the median was 22.80% per year.


Definition

Nielsen Holdings PLC'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)
=38.54/2.25
=17.13

Nielsen Holdings PLC's Share Price of today is $38.54.
Nielsen Holdings PLC's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.27 (Jun. 2016 ) + 0.979 (Sep. 2016 ) + 1.207 (Dec. 2016 ) + -0.206 (Mar. 2017 ) = $2.25.

* 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.

Nielsen Holdings PLC Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
pfcf 0.000.000.000.0042.0526.3333.3725.2321.4617.51

Nielsen Holdings PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
pfcf 25.2325.6724.1521.7621.4624.9126.4526.7217.5118.36
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