BABA FCF Yield Analysis
Updated 301h ago·SEC filings & market data
Key Takeaway
FCF yield measures free cash flow (cash left after operating and capital expenses) relative to company value; at -16.5%, BABA is burning cash at a rate equal to 16.5% of its market value, rather than generating a positive return.
Sector Performance
4th percentileBABA
-17.2%
Sector Median
4.1%
Sector Avg
9.2%
Prior Period
-16.5%(Aug 2026)
Deep Analysis
FCF yield measures free cash flow (cash left after operating and capital expenses) relative to company value; at -16.5%, BABA is burning cash at a rate equal to 16.5% of its market value, rather than generating a positive return.
This sits far below the sector median of 4.2%, placing the company in the 3rd percentile among peers, meaning nearly all competitors produce better cash profitability. The trend is increasing, with the yield improving from -17.9% to -17.3%
Frequently Asked Questions
What does the FCF Yield tell investors about BABA?
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.
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 BABA's Valuation
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-17.2%
Sector Median
4.1%
Sector Avg
9.2%
How BABA's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.