Free Cash Flow Yield Calculator
Measure a company's free cash flow yield from its free cash flow and market capitalization.
What this calculator does
The Free Cash Flow Yield Calculator estimates your result instantly from the values you enter, using standard investing & wealth formulas. Measure a company's free cash flow yield from its free cash flow and market capitalization. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
Result
About Free Cash Flow Yield Calculator
The Free Cash Flow Yield Calculator shows how much free cash flow a company generates relative to its market value. From the free cash flow and the market capitalization, it divides free cash flow by market cap and expresses the result as a percentage.
Free cash flow yield is a valuation gauge that many investors prefer to earnings-based multiples because it is based on actual cash the business produces. A higher yield suggests more cash generation per dollar of market value. The calculator applies the ratio directly to the two figures you enter.
Enter the free cash flow and the market capitalization, press Calculate, and read the free cash flow yield as a percentage.
Formula & Mathematical Calculation
FCF Yield (%) = ( Free Cash Flow ÷ Market Capitalization ) × 100
Calculation Example
A company with $50,000,000 of free cash flow and a $1,000,000,000 market capitalization has a free cash flow yield of ($50,000,000 ÷ $1,000,000,000) × 100 = 5%.
Key Benefits
- Expresses free cash flow as a yield against the company's market value.
- Offers a cash-based valuation gauge as an alternative to earnings multiples.
- Requires market cap above zero, avoiding a divide-by-zero result.
- Uses only the free cash flow and market cap figures you enter.
How to Use this Calculator
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Enter the free cash flow
Type the company's free cash flow in the Free Cash Flow field, for example 50000000. -
Enter the market capitalization
Type the market capitalization in the Market Capitalization field, for example 1000000000. -
Press Calculate
The tool divides free cash flow by market cap and multiplies by 100 to return the yield. -
Compare companies
Repeat for other companies to compare how much cash each generates per dollar of market value.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- Free Cash Flow Yield Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.
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