Free Cash Flow Yield
Free cash flow divided by enterprise value.
FCF yield expresses free cash flow as a percentage of enterprise value. Higher yield implies more cash generation relative to valuation.
Related Terms
Discounted Cash Flow (DCF)
Intrinsic valuation by discounting projected free cash flows to present value.
Weighted Average Cost of Capital (WACC)
The blended cost of equity and debt — the hurdle rate for investments.
FCF Margin
Free cash flow divided by revenue — the ultimate cash generation metric.
EV/FCF
Enterprise value divided by free cash flow (TTM).
Terminal Value
The value of all cash flows beyond the explicit forecast — typically 60-80% of total DCF value.
Dividend Yield
Annual dividend per share divided by share price — the income return.