Sunday, 8 November 2026 Weekly snapshot · Not investment advice standard-equity.report
Valuation
P/FCF — Price to Free Cash Flow
Market cap divided by free cash flow.
Definition
P/FCF expresses how many years of free cash flow investors are paying for the equity. The cash-based equivalent of P/E, immune to non-cash earnings distortions.
Formula
Market Cap ÷ Free Cash Flow
Why it matters
Free cash flow is harder to manipulate than reported earnings, so P/FCF is often the more honest valuation multiple. The inverse — FCF yield — is comparable to a bond yield and helpful when comparing equities to fixed income.
How Standard Equity uses it
Shown as its inverse, FCF yield, in the main table.
The metric
| Category | Valuation |
|---|---|
| Unit | x |