EV/FCF

EV / FCF = Enterprise Value / Free Cash Flow

EV = Market Value + Net Indebtedness
FCF = Free Cash Flow

The lower the ratio of EV-to-free cash flow, the faster a company pays off its debts or creates profits.

Things to keep in mind

• A low value is good.

Related ratios

• EV/EBIT
• EV/EBITDA
• EV/E
• EV/OP
• EV/S
• P/E