FCF Yield
Higher than 16% of Financial Services sector peers
Updated 118h ago
Sector Performance
16th percentileBRK-B
2.4%
Sector Median
6.5%
Sector Avg
42.5%
Deep Analysis
Berkshire Hathaway’s current FCF Yield of 2.4% means that for every dollar of its stock price, the company generates about 2.4 cents in free cash flow — a measure of cash left after capital spending.
This is well below the Financial Services sector median of 6.4%, placing it in the 14th percentile among peers, indicating a much lower cash return relative to price. Over the last eight quarters the metric has been stable, though it fell 4.0% quarter-over-quarter (from 2.5% to 2.4%), with year-over-year change not available. The combination of a low absolute yield and a slight recent decline implies limited cash generation per share compared to its valuation, which adds a layer of risk for investors seeking income or value. This metric supports the overall NEUTRAL verdict, as the below-median yield and stable-but-declining trend do not signal a compelling opportunity or a clear warning.
Frequently Asked Questions
What does the FCF Yield tell investors about BRK-B?
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 BRK-B's FCF Yield compare to its sector?
BRK-B's FCF Yield of 2.4% compares to a Financial Services sector median of 6.5%, placing it in the 16th percentile.
Who are BRK-B's closest peers by FCF Yield?
The closest Financial Services peers by FCF Yield include: AXP (6.2%), ARES (6.1%), PNC (5.3%), NU (5.1%), SCHW (4.9%).
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.
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2.4%
Sector Median
6.5%
Sector Avg
42.5%
How BRK-B's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.