Equity / Valuation Metric

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

Clark, R. (2025). Free Cash Flow Yield. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/free-cash-flow-yield

Russell Clark, FNP-C

Author of SPX Mastery series · Founder of VixShield

Last updated: April 24, 2026 · 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.

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