What is the 'Free Cash Flow Yield'
The free cash flow yield is an overall return evaluation ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market price per share. The ratio is calculated by taking the free cash flow per share divided by the share price. To illustrate:
BREAKING DOWN 'Free Cash Flow Yield'
Free cash flow yield is similar in nature to the earnings yield metric, which is usually meant to measure GAAP earnings per share divided by share price. Generally, the lower the ratio, the less attractive the investment is and vice versa. The logic behind this is that investors would like to pay as little price as possible for as many earnings as possible.
Some investors regard free cash flow (which takes into account capital expenditures and other ongoing costs a business incurs to keep itself running) as a more accurate representation of the returns shareholders receive from owning a business, and thus prefer to free cash flow yield as a valuation metric over earnings yield.

Free Cash Flow Per Share
A measure of a company's financial flexibility that is determined ... 
Sales To Cash Flow Ratio
A comparison of a company's sales to its cash flow. The sales ... 
Cash Flow Per Share
A measure of a firm's financial strength, calculated as: Cash ... 
Free Cash Flow To Sales
A ratio that illustrates the percentage of free cash flow to ... 
Price to Free Cash Flow
A valuation metric that compares a company's market price to ... 
Free Cash Flow  FCF
A measure of financial performance calculated as operating cash ...

Trading
Free Cash Flow Yield: A Fundamental Indicator
Free cash flow can measure a businessâ€™s performance as if youâ€™re looking at its net income line. 
Trading
Free Cash Flow Yield: The Best Fundamental Indicator
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Fundamental Case Study: Is Amazon's Cash Flow Actually Solid? (AMZN)
Review Amazon's cash flow situation, including its free cash flow yield, operating cash flow from organic growth and cash flow from debt financing. 
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Picking Retirement Stocks: Dividends vs. Free Cash Flow
Instead of focusing on dividend payments, a better metric for choosing stocks for your retirement portfolio could be a companyâ€™s free cash flow (FCF). 
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Why Goldman Is Warning About Free Cash Flow Yield (GS)
Learn why Goldman Sachs is alerting investors to the importance of cash flow, and discover a recommended alternative equity valuation metric to free cash flow. 
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Analyze Cash Flow The Easy Way
Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors. 
Investing
What Is the PriceToCashFlow Ratio?
A companyâ€™s pricetocashflow ratio measures its stock price compared to its cash flow per share. 
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Spotting Cash Cows
We show you why some of these companies stand apart from the herd. 
Investing
5 Companies With Huge Cash Flow (AAPL,VZ,MSFT,WMT)
These five companies have major cash flow which makes them good longterm bets. 
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Analyzing The PriceToCashFlow Ratio
Find out how this ratio can help you evaluate companies and make investment decisions.

What's the difference between free cash flow and operating cash flow?
Learn the difference between free cash flow and operating cash flow. Explore how analysts use earnings and cash flow when ... Read Answer >> 
What are some ratios I can use the operating cash flow ratio with?
Understand the importance of a company's operating cash flow. Learn about some of the financial ratios that use the operating ... Read Answer >> 
Is free cash flow the same as net free cash flow?
Know the difference between your net cash flow and free cash flow when pitching your company to any of your potential stockholders. Read Answer >> 
What is the difference between cash flow and free cash flow?
Learn about the main differences between cash flow and free cash flow. In addition to the differences, learn how to calculate ... Read Answer >> 
What is the formula for calculating free cash flow?
Read about some of the formulas for free cash flow, why investors perform cash flow analysis and what a high or rising cash ... Read Answer >> 
What is the difference between cash flow and fund flow?
See how cash flow and fund flow differ from each other, and why fund flow can be used very differently by accountants and ... Read Answer >>