scatÂ·terÂ·plot. n. A graph showing data for two or more variables as coordinates in a Cartesian system of two or more axes, often appearing as scattered or clustered dots. Also called scatter diagram, scattergram. 1  Facebook.
What is 'Free Cash Flow - FCF' Free cash flow (FCF) is a measure of a company's financial performance, calculated as operating cash flow minus capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.
Because it relies on the Statement of Cash Flows, it is thought to be less susceptible to accounting manipulation. Free cash flow is also similar to Warren Buffettâs concept of Ownerâs Earnings, which he uses to value companies. The P/FCF ratio is calculated as follows: P/FCF = Market capitalization / Free Cash Flow. Letâs take a look at a backtest of this ratio to see how it works.