Price to cash flow (PCF) cash flow vs net profit | Alpha Quadrant by The Fifth Person

Questions › Category: Financials Quadrant › Price to cash flow (PCF) cash flow vs net profit

Mei Ying Lee asked 3 years ago

Hello, I would like to clarify something. In the video on P/CF, it is explained that it is used when the company’s cash flow is at least 2X the net profit. Is “cash flow” here referring to cash flow from operating activities?

1 Answers

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Victor Chng Staff answered 3 years ago

Hi Mei Ying, Yes, cash flow is cash flow from operating activities.

Mei Ying Lee replied 3 years ago

Sorry for the late reply, thank you Victor!