AFRM FCF Yield Analysis
Higher than 56% of Technology sector peers
Updated 2555h ago·SEC filings & market data
Key Takeaway
Affirm’s FCF Yield of 2.7% means that for every dollar you invest in the stock, the company generates about 2.7 cents in free cash flow—the cash left after operating and capital expenses—offering a modest cash return on your investment.
Sector Performance
56th percentileAFRM
2.7%
Sector Median
2.5%
Sector Avg
3.9%
Deep Analysis
Affirm’s FCF Yield of 2.7% means that for every dollar you invest in the stock, the company generates about 2.7 cents in free cash flow—the cash left after operating and capital expenses—offering a modest cash return on your investment.
This yield sits below the sector median of 3.4%, placing Affirm in the 39th percentile among technology peers, indicating it generates less free cash flow relative to its stock price than most companies in its industry. The year-over-year, quarter-over-quarter, and eight-quarter trend are all reported as N/A, so no historical direction can be assessed from the available data. With a yield below the sector average and no trend to indicate improvement or decline, the investment risk is neutral—there is neither a clear cash-flow advantage nor a sign of deterioration. This metric supports the overall NEUTRAL verdict, as the below-median yield is not strong enough to justify a bullish view but also not weak enough to warrant a bearish stance.
Frequently Asked Questions
What does the FCF Yield tell investors about AFRM?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does AFRM's FCF Yield compare to its sector?
AFRM's FCF Yield of 2.7% compares to a Technology sector median of 2.5%, placing it in the 56th percentile.
Who are AFRM's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: SMAR (2.4%), AAPL (2.2%), AMBA (2.1%), MODN (2.0%), MSFT (1.9%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master AFRM's Valuation
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2.7%
Sector Median
2.5%
Sector Avg
3.9%
How AFRM's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.