Dados B3 › Glossary

Glossary

P/OCF and P/FCF

Market value divided by the cash operations generated (P/OCF) or by the cash left after capex (P/FCF).

What it is

Market value divided by the cash operations generated (P/OCF) or by the cash left after capex (P/FCF). Shown on the stocks pages.

How Dados B3 calculates it

P/OCF = market value ÷ the year's operating cash flow; P/FCF = market value ÷ (operating cash flow − capex). For P/FCF it is the inverse of the FCF yield.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Market value R$ 2 billion and free cash flow of R$ 200 million: P/FCF = 2,000 ÷ 200 = 10.

What to watch for when reading it

• It appears only when cash is positive and the capex line was identified.
• The same cautions as FCF yield: one year does not tell the story.

See also

• FCF yield (free cash flow yield)

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.