On this page is a cash flow yield calculator. Enter the current price per share of a company plus its cash flow per share (free cash flow, operating cash flow, or other cash flow metric) to compute its cash flow yield.
Cash Flow Yield Calculator
What is the Cash Flow Yield?
Cash flow yield is the percentage of cash flow a company generates based upon the price paid. Generally, you compute it using the cash flow per share and the price per share, but it is mathematically equivalent to using all a company's cash flow plus the total market capitalization.
Price is always the current market price. Cash flow can be any manner of cash flow metrics, from the operating cash flow on the balance sheet to free cash flow measures that add or subtract certain charges.
Cash flow yield is the inverse of the price to cash flow ratio. Multiples are easy to compare company to company, but the yield form can be easier to compare to alternative measures of payout, such as dividend yield or various interest measures.
Cash Flow Yield Formula
The cash flow yield formula is:
cash flow\ yield=\frac{cash\ flow\ per\ share}{price\ per\ share}Where:
- Cash flow per share - one of the various measures of cash flow, including operating cash flow, free cash flow, variants on free cash flow, and unlevered and levered free cash flow.
- Price per share - the current trading price of a share of a company, or alternatively, the total market cap.
