Price-to-Free-Cash-Flow (P/FCF) Calculator

What is Price-to-Free-Cash-Flow (P/FCF)? Price-to-Free-Cash-Flow (P/FCF) is a valuation multiple that compares a company’s equity value (market capitalization) to its free cash...

Price-to-Free-Cash-Flow (P/FCF) Calculator

Calculate the Price-to-Free-Cash-Flow (P/FCF) multiple using market capitalization and free cash flow. Also shows the implied free cash flow yield for quick context.

$

Equity value (share price × shares outstanding). Use the same currency and period context as your free cash flow input.

$

Trailing twelve-month free cash flow. Common definition: Operating Cash Flow − CapEx. If FCF is ≤ 0, P/FCF is not a meaningful valuation multiple.

Scenarios
Try common valuation profiles. These are illustrative only — compare against peers, growth, and FCF quality.
Lower (~10x)Mid (~20x)Higher (~40x)Negative FCF

Results

  • P/FCF Multiple— x
  • P/FCF Multiple—
  • FCF Yield (can be negative)— %

Enter your inputs above to calculate the results.

What is Price-to-Free-Cash-Flow (P/FCF)?

Price-to-Free-Cash-Flow (P/FCF) is a valuation multiple that compares a company’s equity value (market capitalization) to its free cash flow (often trailing twelve months).

It matters because cash flow funds reinvestment (CapEx), deleveraging, buybacks, and dividends—so P/FCF connects valuation to value creation capacity.

Formula

P / FCF = Market Capitalization / Free Cash Flow
FCF Yield(%) = Free Cash Flow / Market Capitalization × 100

Example

  • Market Capitalization: $10,000,000,000
  • Free Cash Flow (trailing twelve months): $500,000,000

Results:

P / FCF = 10,000,000,000 / 500,000,000 = 20.00x
FCF Yield = 500,000,000 / 10,000,000,000 × 100 = 5%

Interpretation: a 20.0x P/FCF means the market values the equity at 20 years of current FCF (before any growth). A 5% FCF yield is the cash return implied by today’s market cap (and can be negative if FCF is negative).

Frequently Asked Questions

What does a negative P/FCF mean, and should I ignore it?

If Free Cash Flow is negative, P/FCF will be negative (or not meaningful as a “multiple”). Treat it as a red flag to investigate why cash flow is negative (CapEx spike, working capital drag, temporary downturn) rather than using it for “cheap vs expensive” comparisons.

When should I use EV/FCF instead of P/FCF?

Use EV/FCF when you want a debt-and-cash-adjusted valuation view (especially for highly leveraged companies) or when comparing firms with very different capital structures. P/FCF is equity-value-based (market cap).

Is Free Cash Flow Yield just the inverse of P/FCF?

Yes. If both use the same inputs (Market Cap and FCF), FCF Yield is the inverse expressed as a percentage—often easier to compare across companies and against other “yield” metrics.

My P/FCF looks “high”—does that automatically mean the stock is expensive?

Not automatically. A high P/FCF can reflect strong expected growth, unusually low current FCF (temporary headwinds), or genuinely expensive pricing. Always sanity-check drivers like CapEx timing and working-capital swings before concluding “overvalued.”

Sources & Methodology