BABA FCF Yield Analysis
Updated 50h ago·SEC filings & market data
Key Takeaway
Free cash flow yield measures the cash a company generates relative to its stock price; a negative -17.9% means BABA is burning cash rather than producing it, which is unusual for an established company.
Sector Performance
3th percentileBABA
-17.9%
Sector Median
4.2%
Sector Avg
7.2%
Prior Period
-22.0%(Jul 2026)
Deep Analysis
Free cash flow yield measures the cash a company generates relative to its stock price; a negative -17.9% means BABA is burning cash rather than producing it, which is unusual for an established company.
Among sector peers, the median FCF yield is 4.2%, and BABA sits at the 3rd percentile — meaning 97% of peers have a higher (better) yield. The metric has been decreasing over the last 8 quarters, with a year-over-year plunge of -559.0% and a modest quarter-over-quarter improvement of +18.6%. This combination of a deeply negative current level and a downward trend signals elevated cash-flow risk, as the company continues to consume cash while most peers generate it. The large YoY drop suggests a structural deterioration, though the small QoQ uptick may hint at stabilization from recent lows. Overall, this metric contradicts the NEUTRAL verdict, as a negative FCF yield with such persistent decline typically warrants a more cautious outlook.
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.
Who are BABA's closest peers by FCF Yield?
The closest peers by FCF Yield include: BBWI (21.0%), COF (21.2%), CMCSA (21.5%), CHTR (21.6%), STT (21.6%).
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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-17.9%
Sector Median
4.2%
Sector Avg
7.2%
How BABA's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.