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EV / free cash flow: what it means and how to read it
Enterprise value ÷ free cash flow, the cash left after the company pays to maintain and grow its assets.
What is EV / free cash flow?
Enterprise value ÷ free cash flow, the cash left after the company pays to maintain and grow its assets.
A worked example
An enterprise value of ₹12,000 Cr and free cash flow of ₹600 Cr gives 20: at this rate the business takes 20 years to pay back its price in cash.
Why does EV / free cash flow matter?
Roughly how many years of free cash it would take to pay for the whole business, debt included.
How do you read EV / free cash flow?
Lower is cheaper. When free cash flow is negative the number means little.
Lower is usually better.
What is a typical EV / free cash flow in India today?
The median across the 1914 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 57 companies44.64
Mid Cap · 88 companies64.51
Small Cap · 1769 companies26.37
By industry
Median, largest industries first
Computers - Software & Consulting · 4019.15
Pharmaceuticals · 9146.59
Auto Components & Equipments · 7345.93
Heavy Electrical Equipment · 19140.46
Civil Construction · 4624.39
Aerospace & Defense · 1580.39
Iron & Steel · 1021.60
Residential Commercial Projects · 3827.20
Hospital · 16114.25
Gems Jewellery And Watches · 1981.12
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.