Price to Free Cash Flow Ratio (P/FCF)
Calculate the price to free cash flow ratio, a valuation ratio that compares a company’s market price to its free cash flow per share.
This ratio provides insight into how the market values a company’s ability to generate free cash flow.
The formula is as follows:
\[\text{Price to Free Cash Flow Ratio} = \text{Market Cap} / \text{Free Cash Flow}\]Also known as: P/FCF ratio.
No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the Price to Free Cash Flow Ratio (P/FCF) for you. Just ask in plain English.
Calculate the Price to Free Cash Flow Ratio (P/FCF) in Python
The Price to Free Cash Flow Ratio (P/FCF) is available in the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_price_to_free_cash_flow_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
price_to_free_cash_flow_ratio = toolkit.ratios.get_price_to_free_cash_flow_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 32.2174 | 19.0341 | 30.5711 | 35.4618 | 41.301 |
| TSLA | 342.45 | 56.6804 | 198.621 | 394.48 | 255.082 |
Parameters
get_price_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.