This ratio compares the share price of the company to how much cash it's generating per share.
This ratio is used as one of the components in O'Shaugnessy's VC1, VC2 and VC3 factors.
In our glossary:
O'Shaughnessy VC1Value Composite One (VC1) is a composite factor introduced by James O'Shaughnessy in the 4th edition of his book 'What Works on Wall Street'.. more...
O'Shaughnessy VC2Value Composite Two (VC2) is an adaptation of the VC1 factor described above.. more...
O'Shaughnessy VC3Value Composite Three (VC3) is another adaptation of O'Shaughnessy's value composite but here he combines the factors used in VC1 with buyback yield.. more...