Operating cash flow to market value ratio
factor.formula
Operating cash flow to market value ratio:
in:
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The net cash flow generated from operating activities in the last 12 months (rolling TTM). This indicator reflects the net amount of cash inflow minus cash outflow actually obtained by the company through operating activities in a certain period of time. This data comes from the cash flow statement in the company's financial statements. Using rolling 12-month data can more accurately reflect the company's recent cash flow status.
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The total market value of a company is the sum of the market values of all its issued shares. It is calculated by multiplying the current share price by the total number of issued shares. The total market value is an important indicator of the overall size of a company and reflects the market's overall assessment of the company's value.
factor.explanation
The operating cash flow to market value ratio is an important indicator for measuring a company's value. It compares the cash flow generated by a company's operating activities with its total market value to determine whether the company's value is overvalued or underestimated by the market. A higher operating cash flow to market value ratio may mean that the company's operating cash generation ability is strong, and the company's intrinsic value may be higher relative to its market value, and vice versa. It should be noted that the effectiveness of this indicator should be comprehensively analyzed in combination with factors such as industry characteristics and the company's development stage to avoid a one-sided interpretation of a single indicator.