Price to cash flow ratio - KCV
The cash flow of a company reflects the actual cash flows over a certain period of time. Compared to the KGV, the KCV is less susceptible to measures of the balance cosmetics. The KCV thus provides information about how the price of a company is related to its liquidity. The price / cash flow ratio can therefore be used to assess the performance of a stock corporation. On average across a broad stock market, KCV values between 15 and 18 are considered fair. Low values are considered good.
Finanzoo.de calculates the score based on the "free cash flow" per share in relation to the current market price of the share. Points are deducted for longer periods with negative free cash flows.