Free Cash Flow Yield (FCF Yield)

  • Updated on

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.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK