Terms Beginning With 'f'

Free Cash Flow Yield (FCF Yield)

  • January 18, 2020
  • Team Kalkine

FCF Yield is an indicator of the solvency of a business if the business has to immediately pay-off its obligations. It is computed by dividing the free cash flow by the market capitalisation of the business. A higher FCF yield indicates the capability of the business to repay its obligation in the event of a liquidation.

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