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Free-cash-flow yield as a value signal

FCF yield (free cash flow divided by market cap or enterprise value) shows how much real cash a business throws off relative to its price — a cleaner value gauge than earnings, which accounting can distort.

A high FCF yield on a stable business is the kind of signal deep-value investors hunt; a high yield on a declining business is a warning, not a bargain.

Screen for durable FCF yield, then verify the cash flow is recurring, not a one-off from selling assets.

Try it: DeepValueRadar on free cash flow yield.