Liability Adjusted Cash Flow Yield - LACFY

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Dictionary Says

Definition of 'Liability Adjusted Cash Flow Yield - LACFY'

A fundamental analysis calculation that compares a company's long-term free cash flow to its outstanding liabilities over the same period. Liability adjusted cash flow yield can be used to determine how long it will take for a buyout to become profitable or how a company is valued. It is calculated as:

                          Average Free Cash Flow                          
[(Outstanding Shares + Options + Warrants) x (Per Share Price) - Liabilities] - [Current Assets - Inventory]

Investopedia Says

Investopedia explains 'Liability Adjusted Cash Flow Yield - LACFY'

Liability adjusted cash flow yield is not commonly used in company valuation. To see whether an investment is worthwhile, an analyst may look at ten years worth of data in a LACFY calculation and compare that to the yield on a 10 year Treasury note. The smaller the difference between LACFY and the Treasury yield, the less desirable an investment is.
Search results for

'Liability Adjusted Cash Flow Yield (LACFY)'

  • Understanding Liability-Adjusted Cash Flow Yield

    http://www.investopedia.com/articles/fundamental-analysis/11/understanding-liability-adjusted-cash-flow-yield.asp
    ... Ratios Given the importance of both free cash flow and valuation, investors may
    want to consider adding liability-adjusted cash flow yield (LACFY) to their ...

  • Salesforce.com And A Valuation In The Clouds

    http://stocks.investopedia.com/stock-analysis/2010/Salesforce.com-And-A-Valuation-In-The-Clouds-CRM-ORCL-MSFT-VMW-CTXS-TLEO1122.aspx
    ... On the other hand, a liability-adjusted cash flow yield (LACFY) based on last year's
    free cash flow or this year's expected level (which, admittedly is not the ...

  • Looking Glass Reveals Better Results At Disney

    http://stocks.investopedia.com/stock-analysis/2010/Looking-Glass-Reveals-Better-Results-At-Disney-DIS-CMCSA-CBS-GE-NWS-SIX1113.aspx
    ... is not all that expensive, no combination of valuation ratio analysis, discounted
    cash flow forecasting or LACFY (liability-adjusted cash flow yield) makes the ...

  • JDS Uniphase Comes Through Loud And Clear

    http://stocks.investopedia.com/stock-analysis/2011/JDS-Uniphase-Comes-Through-Loud-And-Clear-JDSU-FNSR-OCLR-CIEN-DHR0207.aspx
    ... To have a LACFY on par with Treasurys, JDSU would need about $175 in free cash flow. ...
    (For more insight, read Understanding Liability-Adjusted Cash Flow Yield.). ...

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