P/FCF (price / free cash flow): what it is and how to read it

What it is

Like the P/E, but uses the cash that's actually left over (free cash flow) instead of accounting profit.

How to read it

If the P/FCF is much higher than the P/E, accounting profit is turning into little cash. Look at several years: a single year's free cash flow can be very uneven.

Educational information; not a recommendation to buy or sell.