Creades AB P/FCF

What is the P/FCF of Creades AB?

The P/FCF of Creades AB is 1.01

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 Miscellaneous sector on LSE compared to Creades AB

What does Creades AB do?

Creades AB is a private equity and venture capital investment firm specializing in seed/startup, early, mid & late venture, emerging growth, middle market, growth capital and buyout investments. The firm typically invests in small and medium-sized public and private companies. It focuses on Swedish companies. The firm seeks to invest between SEK100 ($15.51 million) and SEK300 million ($46.53 million). The firm prefers to take a majority stake and seat on the board of directors of its portfolio companies. The firm uses personal and balance sheet capital for making investments. Creades AB was founded in 2011 and is based in Stockholm, Sweden.

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