Free-Cash-Flow Yield
Definition
What is Free-Cash-Flow Yield?
Free cash flowCash remaining after operating cash flow and necessary capital expenditure, under the stated definition. divided by market capitalisationThe market value of a company's outstanding shares, calculated as share price multiplied by shares outstanding..
Example in practice
How This Looks in Practice
₦5 billion FCF on a ₦50 billion market valueThe price at which an asset could trade in the market at a given time. gives a 10% FCF yield.
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Related Terms
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.