The P/FCF of CLP Holdings Limited is 2.60
Price to free cash flow (P/FCF) is a valuation metric that compares the company’s current share price to its free cash flow per share.
ttm (trailing twelve months)
Price to free cash flow (P/FCF) is a measure that value investors find useful to analyze a company’s finances in relation to its current stock price. It is a stricter measure than the price to cash flow ratio as it subtracts capital expenditures from cash flow.
Free cash flow relies heavily on the state of a company's cash from operations, which is in turn heavily influenced by the company's net income. Companies can manipulate their free cash flow by lengthening the time they take to pay their bills, shortening the time it takes to collect what's owed to them, and putting off buying inventory. It also depends on what items are considered capital expenditures and this can be different in case of different companies.
Lower values of P/FCF generally indicate a company that is undervalued and whose stock is relatively cheap in relation to its free cash flow. Conversely, higher P/FCF indicate that the company's stock is relatively overvalued. Value investors thus favor companies with low or decreasing price to free cash flow values that indicate high or increasing free cash flow totals and relatively low stock share prices.
It is best to compare price to free cash flow ratios between similar companies in the same industry. However, the P/FCF metric can also be viewed over a longer time frame to see if the company's cash flow to share price value is improving or declining.
CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It serves 5.15 million retail customers in Hong Kong and Australia. The company is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. It has generating capacity of 20,018 equity megawatts; and 16,834 kilometers of transmission and high voltage distribution lines. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.