Free Cash Flow Yield
Definition
Free cash flow per share expressed as a percentage of the current stock price. A high FCF yield indicates the stock may be undervalued relative to the cash it generates.
Formula / Rules
Free Cash Flow Per Share / Share Price × 100
Example
$8 FCF per share on a $100 stock equals 8% FCF yield.
Related Terms
Frequently Asked Question
What is Free Cash Flow Yield?
Free Cash Flow Yield expresses FCF per share as a percentage of stock price. A higher yield suggests a stock may be undervalued or generating strong cash returns relative to price.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.