P/E ratio and free cash flow Q1 Given that the company achieved net income of $3,713k we get a potential net income run rate of $3,713k*4 = $14,852k
With a market cap of ~ $56.4 m, this equates to a forward P/E ratio of 3.79! or an earnings yield of over 26% !
Q1 free cash flow to equity holders (excluding non-cash working capital and restructuring) of $4765k or a run-rate of $19,060k. This equates to a free cash flow multiple of 2.95 or a free cash flow yield of 33.79% ! Impressive.
As the companies debt gets paid down, the cost of equity will lower and the free cash flow multiple will expand. A very attractive risk/reward trade off.