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GuruFocus has detected 5 Warning Signs with World Acceptance Corp $WRLD.
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World Acceptance Corp (NAS:WRLD)
Price-to-Free-Cash-Flow
3.27 (As of Today)

As of today, World Acceptance Corp's share price is USD 79.55. World Acceptance Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was USD 24.31. Hence, World Acceptance Corp's Price-to-Free-Cash-Flow Ratio for today is 3.27.

WRLD' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 1.19   Max: 10.05
Current: 3.27

1.19
10.05

During the past 13 years, World Acceptance Corp's highest Price-to-Free-Cash-Flow Ratio was 10.05. The lowest was 1.19. And the median was 4.06.

WRLD's Price-to-Free-Cash-Flow is ranked higher than
85% of the 93 Companies
in the Global Credit Services industry.

( Industry Median: 7.70 vs. WRLD: 3.27 )

World Acceptance Corp's Free Cash Flow per Share for the three months ended in Dec. 2016 was USD 5.87. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was USD 24.31.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of World Acceptance Corp was 5.80% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 9.60% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 16.10% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 18.50% per year.

During the past 13 years, World Acceptance Corp's highest 3-Year average Free Cash Flow per Share Growth Rate was 33.40% per year. The lowest was 1.60% per year. And the median was 18.45% per year.


Definition

World Acceptance Corp'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)
=79.55/24.305
=3.27

World Acceptance Corp's Share Price of today is USD 79.55.
World Acceptance Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 7.104 (Mar. 2016 ) + 6.195 (Jun. 2016 ) + 5.136 (Sep. 2016 ) + 5.87 (Dec. 2016 ) = USD 24.31.

* 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.

World Acceptance Corp Annual Data

Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16Mar17
pfcf 4.351.973.375.484.414.893.522.921.670.00

World Acceptance Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
pfcf 3.292.922.651.191.621.671.891.992.640.00
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