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:

Also known as: EV/FCF.

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Calculate the EV to Free Cash Flow Ratio in Python

The EV to Free Cash Flow Ratio is available in 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:

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.

Related Valuation Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.