Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...
Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...
Free cash flow yield calculates cash efficiency vs market value, aiding in stock valuation. A high free cash flow yield indicates potential undervaluation, high investment appeal. Evaluate consistency ...