# 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

| Category | Yield |
| -------- | ----- |
| Unit     | %     |

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