Use this calculator to figure out if a stock has a good valuation based on the price to cash flow ratio, otherwise known as the PCFR. A good valuation is to have a PCFR under $20. So if you have a stock with a PCFR of $10, what that means is if you buy the stock you are willing to pay 10x for every $1 of generated cash flow taking expenses into the equation. If the PCFR is $5, then you are willing to pay $5 for every $1 of cash flow generated. So the smaller the better.

• Stock Symbol
• Current Stock Price
• Shares Outstanding
• Levered Free Cash Flow

Calculate

Note: Shares Outstanding and Levered Free Cash Flow should use the same unit. So if one is in billions and the other is in millions, pick a unit and convert first.

For example if we were to look at Tesla (TSLA) and their valuation, first visit their Key Statistics and you might find numbers similar to this:

• Levered Free Cash Flow (ttm): 1.45B
• Shares Outstanding: 180.24M

If we decide to use millions, then first convert 1.45 (billion) to 1450 (million) and use that number.