Free · Equity investment calculators 📈

Share Price & Cash Flow Multiple Calculator

Compare share price with cash flow per share.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Cash flow of 100,000 across 10,000 shares gives 10 per share. A share price of 50 corresponds to a price-to-cash-flow multiple of 5.

Cash flow per share = cash flow ÷ shares; multiple = price per share ÷ cash flow per share

Worked example

Enter these known values and leave the other values blank.

Cash flow
100000 USD
Number of shares outstanding
10000
Price per share
50 USD
Cash flow per share
10 USD
Price to cash flow ratio
5 x

Assumptions and limitations

  • Choose and label a consistent measure, commonly operating cash flow, for the same reporting period. Mixing operating and free cash flow or different share bases can make comparisons misleading.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Which cash-flow figure should I use?

Choose and label a consistent measure, commonly operating cash flow, for the same reporting period. Mixing operating and free cash flow or different share bases can make comparisons misleading.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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