Free Cash Flow Yield FCF Yield
A company's free cash flow as a percentage of its market value, the inverse of P/FCF.
What it is
Free cash flow yield expresses the cash a company generates after capital spending as a percentage of its market value. It is the reciprocal of the price-to-free-cash-flow ratio. A higher yield means you get more cash generation for each dollar invested.
Why it matters
It is a favored value gauge because cash flow is harder to manipulate than reported earnings and shows what is genuinely available for dividends, buybacks, and debt reduction. Pitfalls: free cash flow is lumpy for capital-intensive firms, can turn negative during heavy investment, and a high yield may reflect a market that doubts future cash generation.
How it's calculated
Divide trailing-twelve-month free cash flow (operating cash flow minus capital expenditures) by market capitalization, then multiply by 100. Some analysts use enterprise value in the denominator instead.
How Quintarthai uses it
The operating cash flow and capital expenditures behind this metric are shown in the Financials and Ratios tabs of a stock's company page, where cash-based valuation can be assessed.