Free Cash Flow Yield

See: Free Cash Flow.

Then take the free cash flow in the numerator; put the number of shares outstanding in the denominator and divide it out. So if FCF was $100 million and there were 200 million shares outstanding, then free cash flow per share would be 50 cents. If the stock was trading at $10 a share, then its free cash flow yield would be 50 over 1,000, or 5%.