Free Cash Flow Yield Analyzer

## Free Cash Flow Yield Analyzer

**Stock**: {COMPANY} ({TICKER})

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**STEP 1 — CALCULATE FCF YIELD**
- Market Cap: $___M
- Enterprise Value (EV): $___M
- TTM Free Cash Flow (FCF): $___M
  - FCF = Operating Cash Flow – Capex = $___ – $___ = $___M

- **Equity FCF Yield** = FCF / Market Cap = ___%
  *(what % of your investment is returned in FCF each year)*
- **EV FCF Yield** = FCF / EV = ___%

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**STEP 2 — CONTEXTUALIZE THE YIELD**
| Benchmark                         | Yield   | vs FCF Yield           |
|---|---|---|
| 10Y Treasury Yield                | ___%    | FCF yield premium: ___% |
| S&P 500 Avg FCF Yield (~4%)       | 4%      | Premium / Discount: ___% |
| Sector median FCF yield           | ___%    | Premium / Discount: ___% |
| {TICKER} 5-year avg FCF yield     | ___%    | vs history: ___%        |

**Spread to bonds**: FCF Yield – 10Y Treasury = ___% (>3% = attractive historically)

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**STEP 3 — FCF QUALITY CHECK**
| Question                                          | Answer      |
|---|---|
| Is FCF consistently above net income? (quality sign) | Yes / No |
| Is maintenance capex separable from growth capex?    | Yes / No |
| Accruals ratio (Net income – CFO) / Assets < 5%?     | ___%     |
| Has FCF grown at least as fast as revenue (3yr)?     | Yes / No |

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**STEP 4 — FCF GROWTH SCENARIO**
If FCF grows at ___% for 5 years:
- Year 5 FCF: $___M
- At same yield (___%), implied market cap: $___M
- Annualized return (price appreciation only): ___%

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**VERDICT**
- FCF yield attractive vs. alternatives: Yes / No
- FCF quality: High / Medium / Low
- **Action**: Buy now / Buy lower (target: $___) / Hold / Avoid