EV to Free Cash Flow Ratio
Calculate the EV to free cash flow ratio, a valuation ratio that compares a company’s enterprise value (EV) to its free cash flow.
Unlike EV to Operating Cash Flow, this ratio nets out capital expenditures, giving a valuation multiple based on the cash actually available to all capital providers after reinvestment in the business.
The formula is as follows:
\[\text{EV to Free Cash Flow Ratio} = \text{Enterprise Value} / \text{Free Cash Flow}\]Also known as: EV/FCF.
EV to Free Cash Flow Ratio in Python
get_ev_to_free_cash_flow_ratio is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_ev_to_free_cash_flow_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
ev_to_fcf_ratio = toolkit.ratios.get_ev_to_free_cash_flow_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 33.3102 | 20.0107 | 31.5146 | 36.2809 | 42.075 |
| TSLA | 340.351 | 55.4475 | 197.279 | 393.991 | 253.891 |
Parameters
get_ev_to_free_cash_flow_ratio accepts the following parameters:
- show_daily (bool, optional): Whether to show daily data. Defaults to False.
- diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.