Operating Cash Flow to Market Value (OCFMV)
factor.formula
Operating Cash Flow to Market Value (OCFMV):
in:
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Indicates the net cash flow generated by operating activities in the last 12 months (rolling 12 months or TTM). This data comes from the cash flow statement in the company's financial statements. It reflects the actual net cash inflow generated by the company's main business activities, excluding the impact of investment and financing activities, and more directly reflects the company's own profit quality and cash creation ability. Using TTM data can more timely reflect the company's latest cash flow status.
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Indicates the total market value of a company, usually calculated by multiplying the stock's closing price by the total number of shares outstanding. The total market value represents the market's assessment of the company's overall value. The total market value data comes from the stock trading market.
factor.explanation
Operating cash flow to market value (OCFMV) is an indicator that measures a company's cash flow generation ability relative to its market value, which is the inverse of the price-to-cash flow ratio. This indicator reveals a company's ability to generate cash through its main business by comparing the company's operating cash flow in the last 12 months with the company's market value. A higher OCFMV value may suggest that the company's market value is underestimated, which means that the company has the potential to achieve a higher return on investment. In quantitative investment, OCFMV is often used as a key factor in value-oriented stock selection strategies. It helps investors identify companies with abundant cash flow but relatively low market valuations, thereby building an investment portfolio with value investment characteristics. At the same time, this factor can also reflect the company's operating quality. The stronger the operating cash flow, the more stable the company's operations and the stronger its ability to resist risks.