Terminology used in P/E Ratio (V Quadrant) | The Investment Quadrant by The Fifth Person

Questions › Category: Valuation Quadrant › Terminology used in P/E Ratio (V Quadrant)

Yong Perng Tan asked 2 years ago

Dear admin/experts,
In the video under the P/E ratio. Net cash/debt per share is mentioned. May I know if this is the same as free cash flow to equity taught in the F quadrant? If it’s not, how do I calculate this net cash/debt per share, or where do I find it?

1 Answers

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Victor Chng answered 2 years ago

Hi Yong Perng,

Net cash/debt per share is different from FCF to equity.

You can obtain the net cash/debt per share from the balance sheet. Under the current asset, it is called cash & cash equivalent. As for the debt, you can find it in the current and non-current liabilities.

The formula is (Cash & Cash Equivalent – Debt) divided by number of outstanding shares.

Yong Perng Tan replied 2 years ago

Thank you so much Victor!

Victor Chng replied 2 years ago

Welcome :)