Payback Time Calculator
How many years would the company's growing free cash flow take to pay back the price you pay? Fill it from any stock we cover, or enter your own numbers.
Fill from a stock (optional)
Uses PaybackPrice's stored numbers for that stock. You can change any of them.
Last 12 months; if negative, the last positive year
The price you'd pay
Result
Enter free cash flow per share, growth and price, or fill from a stock.
Questions
What is Payback Time?
The number of years it takes for a company's free cash flow per share, growing every year, to add up to the price you pay for one share. It's like asking how long a business you bought would take to pay you back.
What's a good Payback Time?
Rule #1 looks for 8 years or less. The calculator also shows the highest price that still pays back within 8 years.
Why free cash flow and not earnings?
Free cash flow is the cash a business actually has left after paying for its operations and investments, so it's harder to flatter than earnings. If the latest year is negative, use the last positive year.
How is this related to PaybackPrice?
Our name comes from the same idea: the price at which a stock pays you back. Our buy price for each stock is a deep discount to its fair value, so it's the price where the numbers work in your favour.
PaybackPrice has already worked out a fair value and buy price for more than 2,400 US stocks, and can tell you when one reaches its buy price.
For education only, not investment advice. The result is only as good as the numbers you put in. More calculators