The Price-To-Cash-Flow Method of Stock Valuation Generally

question 46

Multiple Choice

The price-to-cash-flow method of stock valuation generally

• A) uses either EBITDA or operating cash flow from the cash flow statement as a measure of cash flow.
• B) relies on historical cash flows.
• C) produces a cash flow multiple that is greater than the P/E multiple.
• D) applies the P/E multiple to the cash flow per share value.

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Individuals or entities that save more money than they spend, contributing to their financial assets over time.

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A record that traces the detailed financial transactions of an entity to its original source for verification purposes.

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