Overview
Free cash flow yield compares cash generation with market value.
Formula
FCF Yield = Free Cash Flow / Market Capitalization
How to Interpret
High Value
A high yield can indicate attractive cash valuation if cash flow is sustainable.
Low Value
A low yield can indicate rich pricing or temporarily depressed cash flow.
Where It Is Used
Using a rolling 4-period lens for FCF Yield typically reduces single-period decision noise.