What is a good price to cash flow ratio? - KamilTaylan.blog
23 April 2022 8:32

What is a good price to cash flow ratio?

Currently, the average Price to Cash Flow (P/CF) for the stocks in the S&P 500 is 14.05. But just like the P/E ratio, a value of less than 15 to 20 is generally considered good.

Is a high price to cash flow ratio good?

The Bottom Line

A high P/CF ratio indicated that the specific firm is trading at a high price but is not generating enough cash flows to support the multiple—sometimes this is OK, depending on the firm, industry, and its specific operations.

What is a good price to value ratio?

Traditionally, any value under 1.0 is considered a good P/B value, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value under 3.0.

Is 10 a good PE ratio?

A P/E ratio of 10 might be pretty normal for a utility company, while it might be exceptionally low for a software business. That’s where the industry PE ratios come into play.

Is 30 a good PE ratio?

A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company’s early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.

What is Tesla’s PE ratio?

Tesla PE ratio as of April 20, 2022 is 209.83. Please refer to the Stock Price Adjustment Guide for more information on our historical prices. Tesla Inc.

Why is Ebay PE so low?

EBAY’s 12-month-forward PE to Growth (PEG) ratio of 1.69 is considered a poor value as the market is overvaluing EBAY in relation to the company’s projected earnings growth due. EBAY’s PEG comes from its forward price to earnings ratio being divided by its growth rate.

What is Amazon PE ratio?

Amazon’s PE is currently 58.9.

Is 55 a good PE ratio?

Examples of a Good P/E Ratio

I’d prefer it to be under 15, but it’s ok if not. It’s also ok if the stock is like P/E = 27. That’s not much different than P/E = 24– if you think about it. Say that a stock has great metrics all across the board, but the P/E is just barely higher than 25.

Does Walmart have a good PE ratio?

The average P/E ratio varies by industry, but across the board, it is around 15. As of Q2 2020, Walmart’s P/E ratio is about 23.88, meaning that WMT shares trade in the market at around 24 times the earnings per share.

Why is Tesla’s PE ratio so high?

Tesla’s gross profit margins are better than industry peers. That’s one reason Tesla gets a premium valuation. Jonas also believes that Tesla will sell more stuff such as insurance and self driving software that can generate recurring sales. That’s new for the auto industry and has the potential to add to profits.

What is Chewy’s PE ratio?

0.47. PE Ratio (TTM)

What company has the best PE ratio?

Tesla

Tesla Has the Highest PE Ratio Among the World’s Ten Largest Companies. Using a stock’s price-to-earnings (P/E) ratio is one of the quickest ways to learn whether a company is overvalued or undervalued.