Price to Operating Cash Flow

This is similar to the P/FCF measure but uses a looser measure of cash flow, called Operating Cash Flow, which does not deduct Capital Expenditures.

Operating Cash Flow, is the amount of actual cash made by a company's business.

It is similar to Operating Profit but it ignores the effect of non-cash items.

In general, the higher this measure, the more expensive the company.

There are several advantages that the P/FCF holds over other investment multiples - most notably the fact that, in contrast to Earnings, Sales or even Book Value, companies have a harder time manipulating cash flow.

This is measured on a TTM basis and uses diluted shares outstanding.