Free Cash Flow Yield

FCFY (Free Cash Flow Yield) is an indicator that compares free cash flow and market cap. It is a representation of the income (free cash flow) created by an investment.

A yield of 12 percent means that a company is generating 12 percent of its Market Capitalization in free cash flow yearly. Generally, higher yields are more appealing, because they indicate that investors pay less for each unit of cash flow.

Formula

FCFY = Annualized Free Cash Flow per Share / Market Capitalization

YCharts Calculates this metric as:

FCFY = Trailing 12 Months Free Cash Flow / Current Market Capitalization
(See the Free Cash Flow definition below for how we calculate that number)