Title: Price/cash flow ratio
Passage: For example, if the stock price for two companies is $25 per share and one company has a cash flow of $5 per share (25/5=5) and the other company has a cash flow of $10 per share (25/10=2.5), then if all else is equal, the company with the higher cash flow (lower ratio, P/CF=2.5) has the better value.
Question: is a high price to cash flow ratio good
Answer: yes