Price to free cash flow ratio is calculated as company's share price divided by free cash flow per share.

Free Cash Flow = Cash flow from Operation - Capital Expenditure

1. Cash flow from Operation represents the amount of money a company brings in from its ongoing operation after adjusting all the non-cash expenses.
2. Capital Expenditure is the money spent by a business on acquiring or maintaining fixed assets, such as land, buildings, and equipment.
3. In other words, free cash flow represents the money available for shareholders after paying its operating expenses and capital expenditures.

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