G4S Plc P/FCF
What is the P/FCF of G4S Plc?
The P/FCF of G4S Plc is 6.71
What is the definition of P/FCF?
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.
P/FCF of companies in the Industrials sector on LSE compared to G4S Plc
What does G4S Plc do?
G4S plc, together with its subsidiaries, provides security and related services in Africa, the Americas, Asia, Europe, and the Middle East. The company offers software tools, including evidence based risk assessment, incident management, and travel advisory systems, such as RISK360; and proprietary security systems comprising symmetry connect access control and visitor management systems. It also provides custody, detention, rehabilitation, and care services; automated cash solutions for retailers, automated bulk-teller solution for banks, and mobile banking services, as well as G4S Pay, a retail cash solution; and security advice, risk mitigation strategies, secure support, and integrated solutions. The company serves corporates and industrials, government, financial institutions, private energy/utilities, and ports and airports, as well as the retail, transport and logistics, and leisure and tourism sectors. G4S plc was founded in 1901 and is based in London, the United Kingdom.
Companies with p/fcf similar to G4S Plc
- Cardinal Health has P/FCF of 6.70
- Medibank Private has P/FCF of 6.70
- Gold Road Resources has P/FCF of 6.70
- Gran Tierra has P/FCF of 6.70
- Millennium Services has P/FCF of 6.70
- Hastings Plc has P/FCF of 6.70
- G4S Plc has P/FCF of 6.71
- North American Construction Ltd has P/FCF of 6.72
- Genesis Land Development has P/FCF of 6.72
- MPC Münchmeyer Petersen Capital AG has P/FCF of 6.72
- Global Payments has P/FCF of 6.72
- FSA has P/FCF of 6.73
- CapitaLand Retail China Trust has P/FCF of 6.73