Valuation
What is Free Cash Flow (FCF)?
Free cash flow is the cash a company generates after accounting for capital expenditures, the money available for dividends, buybacks, or debt reduction.
Formula
FCF = Operating Cash Flow - Capital Expenditures
How to Interpret
Consistently positive FCF is a sign of financial health. Companies with strong FCF have more flexibility to reward shareholders and invest in growth.
Typical Ranges
Positive and growing. FCF yield (FCF/Market Cap) above 5% is attractive.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Free Cash Flow.