Free Cash Flow Yield
Free Free Cash Flow Yield calculator with clear step-by-step results.
About Free Cash Flow Yield
Free cash flow yield measures how much cash a business generates relative to its price.
Formula
Formula
FCF yield = free cash flow ÷ market cap × 100
Worked example
With the default values below, Free Cash Flow Yield returns FCF Yield of 5.00%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Free cash flowminimum 0 $
- 30,000,000 $
- Market capminimum 0 $
- 600,000,000 $
Results
- FCF Yield
- 5.00%
- FCF Multiple (P/FCF)
- 20.00
- FCF per Dollar of Market Cap
- 0.0500
Step by step
- 1Values used
- 2Formula
- 3FCF Yield= 5.00
- 4FCF Multiple (P/FCF)= 20.00
- 5FCF per Dollar of Market Cap= 0.0500
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Free cash flow yield measures how much cash a business generates relative to its price.
Why does this matter?
Cash is harder to manipulate than earnings.