The visible spectrum is the portion of the electromagnetic spectrum that is visible to the human eye. Electromagnetic radiation in this range of wavelengths is called visible light or simply light. A typical human eye will respond to wavelengths from about 390 to 700 nm. In terms of frequency, this corresponds to a band in the vicinity of 430â770 THz.
P/FCF = Market capitalization / Free Cash Flow. The Price-to-Free Cash Flow (P/FCF) ratio a popular valuation ratio among value investors. It is similar to the P/E ratio but free cash flow is just operating cash flow minus capital expenditures.
Free cash flow valuation is an approach to business valuation in which the business value equals the present value of its free cash flow. It involves projecting free cash flows into future and then discounting them at the appropriate cost of capital. There are two approaches to valuation using free cash flow. The first involves discounting projected free cash flow to firm (FCFF) at the weighted average cost of the capital (WACC) to find the total business value. The second involves discounting future free cash flow to equity (FCFE) at the required return of equity to find the value of the business equity.