Yield

FCF Yield

Free cash flow as a percentage of market cap.

Definition

FCF yield is the inverse of P/FCF — it expresses free cash flow as a percentage of equity value, making it directly comparable to bond yields.

Formula

(Free Cash Flow ÷ Market Cap) × 100

Why it matters

FCF yield is the cleanest 'cash return on cost' metric. Comparing a stock's FCF yield to the 10-year Treasury yield is one shortcut to gut-check whether equities are cheap or expensive in a given rate environment.

How Standard Equity uses it

Shown in the main table (using the year's average price).

The metric

CategoryYield
Unit%
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