FCF yield calculator

FCF yield asks what cash the operations produced, as a rate on the equity market value:

$$\text{FCF yield} = \frac{\text{FCF}}{\text{Market cap}}$$

$55,000,000 of unlevered FCF on $1,100,000,000 of market cap is 5 percent. That $55,000,000 is the first free cash flow teaching bridge. The market cap is not the P/E teaching sheet. It is a different firm-size on purpose.

The calculator on this page is that one division. How FCF yield works owns it. Earnings yield is profit over price on the P/E sheet. FCF yield against earnings yield is the pair, on two sheets.

Keep FCF at $55,000,000. Cut market cap to $550,000,000. Yield rises to 10 percent. Cash did not rise. The equity value in the denominator did.

FCF $70,000,000, market cap $1,400,000,000. Yield is 5 percent again. That $70,000,000 is the FCF bridge when working capital is a source. The 5 percent matched the first sheet on a different cash line and a different cap.

It is not FCF over enterprise value, not earnings yield, and not a dividend. The three sheets are 5 percent on $1,100,000,000, 10 percent on $550,000,000, and 5 percent on $70,000,000 over $1,400,000,000. This is educational material, not financial advice.