RIT Capital Partners Plc P/FCF
What is the P/FCF of RIT Capital Partners Plc?
The P/FCF of RIT Capital Partners Plc is 27.99
What is the definition of P/FCF?
Price to free cash flow (P/FCF) is a valuation metric that compares the company’s current share price to its free cash flow per share.
ttm (trailing twelve months)
Price to free cash flow (P/FCF) is a measure that value investors find useful to analyze a company’s finances in relation to its current stock price. It is a stricter measure than the price to cash flow ratio as it subtracts capital expenditures from cash flow.
Free cash flow relies heavily on the state of a company's cash from operations, which is in turn heavily influenced by the company's net income. Companies can manipulate their free cash flow by lengthening the time they take to pay their bills, shortening the time it takes to collect what's owed to them, and putting off buying inventory. It also depends on what items are considered capital expenditures and this can be different in case of different companies.
Lower values of P/FCF generally indicate a company that is undervalued and whose stock is relatively cheap in relation to its free cash flow. Conversely, higher P/FCF indicate that the company's stock is relatively overvalued. Value investors thus favor companies with low or decreasing price to free cash flow values that indicate high or increasing free cash flow totals and relatively low stock share prices.
It is best to compare price to free cash flow ratios between similar companies in the same industry. However, the P/FCF metric can also be viewed over a longer time frame to see if the company's cash flow to share price value is improving or declining.
P/FCF of companies in the Finance sector on LSE compared to RIT Capital Partners Plc
What does RIT Capital Partners Plc do?
RIT Capital Partners plc is a self-managed investment trust. The firm invests in the public equity and currency markets across the globe. It also invests in private investments and equity funds. The firm benchmarks the performance of its portfolio against the RPI plus 3% and MSCI All Country World Index (50% Sterling). It employs a top-down approach to make its investments. The firm makes its investments in companies operating across diversified sectors. RIT Capital Partners plc was founded on August 1, 1988 and is based in London, United Kingdom.
Companies with p/fcf similar to RIT Capital Partners Plc
- Option Care Health has P/FCF of 27.96
- McDonald`s Corp has P/FCF of 27.97
- AMGEN has P/FCF of 27.98
- Standard Life Aberdeen plc has P/FCF of 27.98
- Zeta Global has P/FCF of 27.98
- Encompass Health Corp has P/FCF of 27.98
- RIT Capital Partners Plc has P/FCF of 27.99
- LiDCO Plc has P/FCF of 28.00
- Cummins has P/FCF of 28.00
- Life360 has P/FCF of 28.02
- Maxim Integrated Products has P/FCF of 28.04
- L3Harris Technologies Inc has P/FCF of 28.06
- Sun Art Retail has P/FCF of 28.07