Free Cash Flow Yield
Screen stocks by free cash flow yield — compare cash generation across companies to spot value opportunities.
How It Works
Free cash flow yield is a fundamental value metric that compares a company's cash generation to its market price. Unlike earnings-based metrics like P/E ratio, FCF yield is harder to manipulate because cash flow is less susceptible to accounting adjustments. Investors use FCF yield to find undervalued companies that generate strong cash flows.
Enter the free cash flow (operating cash flow minus capital expenditures) and market capitalization for each ticker you want to analyze. Optionally add enterprise value and earnings for additional metrics. The tool computes FCF yield, unlevered FCF yield, FCF multiple, earnings yield, and FCF conversion rate. Tickers are ranked by FCF yield so you can quickly compare value across companies.
The Formula
FCF Yield = (Free Cash Flow / Market Cap) × 100
Unlevered FCF Yield = (Free Cash Flow / Enterprise Value) × 100
FCF Multiple = Market Cap / Free Cash Flow
Earnings Yield = (Earnings / Market Cap) × 100
FCF Conversion = (Free Cash Flow / Earnings) × 100
Results ranked by FCF yield from highest to lowest.
FAQ
What is free cash flow yield?
Free cash flow (FCF) is the cash a company generates after operating expenses and capital expenditures. FCF yield measures how much FCF a company produces relative to its market capitalization — essentially the cash return you would receive if all FCF were distributed to shareholders.
What is a good FCF yield?
FCF yield > 8% is considered high and may indicate a value opportunity. 4–8% is moderate, and below 4% is low — suggesting the stock is either expensive or the business generates limited cash relative to its size.
What's the difference between FCF yield and unlevered FCF yield?
FCF yield uses market capitalization, reflecting the return to equity holders. Unlevered FCF yield uses enterprise value (market cap + debt − cash), reflecting the return to all capital providers. Unlevered FCF yield is more useful for comparing companies with different debt levels.
How does FCF yield compare to earnings yield?
FCF yield shows cash generation relative to market price, while earnings yield (the inverse of P/E) shows accounting earnings relative to price. When FCF yield exceeds earnings yield, the company converts more than 100% of earnings to cash — a sign of high-quality earnings.
What is the FCF multiple?
The FCF multiple is the inverse of FCF yield (market cap / FCF). It represents how many years of current FCF it would take to recoup the market cap. A lower FCF multiple suggests a cheaper valuation on a cash basis.
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