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--- business:valuations [2023/10/13 01:10] – wikiadmin
+++ business:valuations [2023/10/13 01:11] (current) – wikiadmin
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 **4. Price-to-Cash-Flow (P/CF) Ratio:**
-- **Definition:** The Price-to-Cash-Flow (P/CF) ratio measures how much investors are willing to pay for each dollar of a company's cash flow. It is calculated by dividing the stock price by the cash flow per share:
+**Definition:** The Price-to-Cash-Flow (P/CF) ratio measures how much investors are willing to pay for each dollar of a company's cash flow. It is calculated by dividing the stock price by the cash flow per share:
-   **P/CF Ratio = Stock Price / Cash Flow Per Share**
+**P/CF Ratio = Stock Price / Cash Flow Per Share**
 - **When to Use P/CF Ratio:** P/CF ratios are valuable for assessing a company's ability to generate cash and for comparing companies with different capital structures.
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 **1. Net Asset Value (NAV):**
-- **Definition:** Net Asset Value is a method that calculates the value of a company based on the fair market value of its assets minus its total liabilities. In essence, it determines how much shareholders would receive if the company's assets were sold, and all its debts were paid off.
+**Definition:** Net Asset Value is a method that calculates the value of a company based on the fair market value of its assets minus its total liabilities. In essence, it determines how much shareholders would receive if the company's assets were sold, and all its debts were paid off.
 - **Formula:** The formula for calculating NAV is as follows:
-   **NAV = Total Assets - Total Liabilities**
+**NAV = Total Assets - Total Liabilities**
 - **Advantages:**