BP FCF Yield Analysis
Updated 265h ago·SEC filings & market data
Key Takeaway
At 10.7%, BP’s free cash flow (FCF) yield—the cash a company generates after expenses relative to its stock price—means that for every $100 you invest, you would receive roughly $10.70 in pure cash return, a signal of strong cash generation.
Sector Performance
87th percentileBP
10.7%
Sector Median
4.1%
Sector Avg
7.1%
Prior Period
11.8%(Jul 2026)
Deep Analysis
At 10.7%, BP’s free cash flow (FCF) yield—the cash a company generates after expenses relative to its stock price—means that for every $100 you invest, you would receive roughly $10.70 in pure cash return, a signal of strong cash generation.
This is well above the sector median of 4.2%, placing BP in the 87th percentile among its peers, indicating it ranks higher than most. However, the metric has been decreasing over the last eight quarters, with the current value of 10.7% down 9.3% from the prior quarter (year-over-year change is not available). The combination of a high level relative to peers and a declining trend suggests that while BP still offers attractive cash returns, the fading momentum warrants caution. This mixed picture directly supports the overall NEUTRAL verdict: the elevated yield is a positive, but the consistent decrease keeps the stock from being a clear buy or sell.
Frequently Asked Questions
What does the FCF Yield tell investors about BP?
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 BP's closest peers by FCF Yield?
The closest peers by FCF Yield include: SG (-15.7%), RARE (-16.9%), BABA (-17.9%), SPWR (-18.1%), CG (-20.4%).
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 BP's Valuation
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10.7%
Sector Median
4.1%
Sector Avg
7.1%
How BP's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.