What is a cheap cash flow multiple for a stock?

Answer 1

Cheap by itself means nothing. It has to be cheap compared to something.

If I say something is $18, there is no value in that. But if i say it is usually $30, suddenly $18 looks cheap. If I say every other stock in the industry is at $25, suddenly it looks cheap.

But if I say it is usually $9, or that all of the other stocks in the industry are at 7, that $18 looks pretty expensive.

So find comparables, either normalized or historical averages, or industry averages, and then you will have a basis for defining cheap for your company.

Answer 2

How about zero? or a negative cash flow. That's cheap, but not a bargain.