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Valuation

FCF Yield

Free cash flow as a share of the company’s market value — the cash return you would earn each year if you bought the whole business at today’s price. A 5% FCF yield means the company generates five cents of spendable cash for every dollar the market values it at. Higher is cheaper, and unlike earnings it is hard to flatter with accounting choices, because it counts cash that actually came in. A negative yield means the business is burning cash. In the Meridian Score it is one of the Valuation measures, compared against the company’s own sector.

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Educational information, not investment advice. See it applied across the screener →