Free cash flow yield

Valuation

Free cash flow as a share of market cap: P/FCF turned upside down.

How it is worked out

Free cash flow over the last twelve months divided by market cap.

How to read it

  • It shows how much cash the company makes for each dollar the market values it at, before it decides what to do with it (dividends, buybacks, acquisitions, debt).

Example

Cash flow $1bn, market cap $20bn: a 5% yield.

Related terms

Related pages

The other pages on US stocks, free to read. On the company pages, the last three fiscal years are open to everyone, five with a free account, and every year with Ploutos Investor.

US stocksThe market today, the sectors, the largest companies and the week's results.The market's sectorsThe 11 sectors side by side: returns, share of the market, median P/E and dividend.Compare stocksTwo companies side by side: price over up to ten years, with and without dividends, and every figure.US dividend stocksEach dividend's yield next to whether the company's cash covers it and whether it was ever cut.

Explanations of terms for learning, with examples from SEC filings.