FCF yield
Fundamental analysisFree cash flow divided by market capitalisation.
In plain terms
The cash return on buying the whole company. Much harder to manipulate than earnings.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
Free cash flow divided by market capitalisation.
The cash return on buying the whole company. Much harder to manipulate than earnings.
Earnings per share divided by price — the inverse of PE.
Useful, but based on accounting profit. When it diverges sharply from FCF yield, trust the cash.