---
title: "Definition of FCF Yield"
url: https://signalscreener.fr/definition/fcf-yield/
markdown_url: https://signalscreener.fr/definition/fcf-yield.md
description: "Free cash flow per share divided by the stock price, showing what percentage yield an investor receives in FCF terms."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "FCF Yield"
  - "Free Cash Flow Yield"
translations:
  de: https://signalscreener.fr/de/definition/fcf-yield.md
  es: https://signalscreener.fr/es/definition/fcf-yield.md
  fr: https://signalscreener.fr/fr/definition/fcf-yield.md
---

# Free Cash Flow Yield

## What is FCF Yield?

Free cash flow per share divided by the stock price, showing what percentage yield an investor receives in FCF terms.

## Think of it like this

Like knowing the 'interest rate' a stock pays in cash generation - a 5% FCF yield means the company generates 5 cents of free cash for every dollar of stock price.

## Formula

```
FCF Yield = Free Cash Flow per Share ÷ Stock Price × 100
```

- **FCF per Share**: Total FCF divided by shares outstanding
- **Stock Price**: Current market price

## Why it matters

- Shows cash return potential
- Higher yield = potentially better value
- Can compare to dividend yield
- FCF can fund dividends, buybacks, or growth

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| > 8% | High Yield | Strong cash generator |
| 5-8% | Good | Solid cash generation |
| 2-5% | Moderate | Average for quality companies |
| < 2% | Low | Expensive or growth phase |

## Real-world example

Berkshire Hathaway often trades at 5%+ FCF yield, attracting value investors.

---

This is educational content, not financial advice.

Source: [Definition of FCF Yield](https://signalscreener.fr/definition/fcf-yield/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

All definitions in this language as Markdown: https://signalscreener.fr/definition/llms.txt
Human index: https://signalscreener.fr/definition/
Site overview for agents: https://signalscreener.fr/llms.txt