Free · Business valuation and cash flow

Free Cash Flow, Yield, Margin & Per Share

Calculate operating cash flow less capital spending, with per-share cash flow, equity yield and revenue margin from consistent inputs.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Operating cash flow of 300 less capital spending of 100 gives free cash flow of 200. With 100 shares at 20 each and revenue of 1,000, that is 2 per share, 10% yield and 20% margin.

FCF = operating cash flow − capital expenditure; FCF/share = FCF ÷ shares; yield = FCF ÷ market cap; margin = FCF ÷ revenue

Worked example

Enter these known values and leave the other values blank.

Operating cash flow
300 USD
Capital expenditures — positive outflow
100 USD
Shares outstanding
100
Share price
20 USD
Revenue
1000 USD
Operating cash flow less capital expenditures
200 USD
Free cash flow per share
2 USD
Equity market capitalization
2000 USD
Free-cash-flow equity yield
10 %
Free cash flow / revenue
20 %

Assumptions and limitations

  • This tool uses the common definition operating cash flow minus capital expenditures. Free cash flow is not uniformly defined across company disclosures.
  • Capital expenditures are entered as a nonnegative cash-outflow amount. Operating cash flow and the resulting FCF, yield and margin can be negative or zero.
  • Share count, share price, market capitalization and revenue must be positive. Use one currency and scale and identify the cash-flow reporting period.
  • The yield uses equity market capitalization, not enterprise value. This is not a full valuation or a forecast of cash available after every obligation.

Common questions

Can free cash flow and its margin be negative?

Yes. Capital expenditure can exceed operating cash flow, and operating cash flow itself can also be negative.

Will this match every company’s reported free cash flow?

Not necessarily. Read the company’s definition and reconciliation; some disclosures include other adjustments.

References

Allow negative and zero free-cash-flow margins while requiring capital expenditure to be entered as a nonnegative cash outflow.

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