How the Price to Cash Ratio is Useful
by Roger Wohlner
The price-to-cash ratio equals a company's share price divided by cash flow per share. Cash flow equals earnings plus depreciation, amortization, and other non-cash expenses. This ratio can be helpful when evaluating companies with significant noncash expenses.
Source: http://www.investorguide.com/igu-article-828-stock-strategies-evaluating-potential-stock-investments.html
