The P/FCF of Consolidated Water Co. Ltd. is 9.08
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.
about consolidated water co. ltd. consolidated water co. ltd. develops and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce or nonexistent. consolidated water operates water production and/or distribution facilities in the cayman islands, belize, the british virgin islands, the commonwealth of the bahamas, and bali, indonesia. we have more than 35 years of experience in developing and operating sea water reverse osmosis (swro) plants and water distribution systems. since 1973, consolidated water has grown from a locally owned cayman islands company to an international organization. we currently operate in the following countries: bahamas, belize, bermuda, british virgin islands, indonesia and cayman islands. we have three principal business segments: retail water operations, bulk water operations and engineering & management services. consolidated water’s common stock is listed on t