Free cash flow yield
ValuationDefinition
Free cash flow divided by market cap (or enterprise value). Inverse of P/FCF. Measures the cash return you'd earn if you bought the entire equity at current prices.
FCF yield above 8-10% is attractive; below 4% rich. Pacer COWZ ETF screens the Russell 1000 for top-decile FCF yield names — outperformed since launch by capturing the value premium without falling into accounting traps.
FCF yield above 8-10% is attractive; below 4% rich. Pacer COWZ ETF screens the Russell 1000 for top-decile FCF yield names — outperformed since launch by capturing the value premium without falling into accounting traps.
Formula
FCF yield = FCF / Market cap
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