FCF Yield
Higher than 83% of TECHNOLOGY sector peers
Updated 414h ago
Sector Performance
83th percentileCSCO
3.0%
Sector Median
1.1%
Sector Avg
1.0%
Deep Analysis
The current FCF Yield of 3.0% means that for every $100 you invest in CSCO, the company generates $3.00 in free cash flow per year — free cash flow is the cash left after operating and capital expenses, used as a measure of financial health.
Compared to sector peers, this yield sits above the TECHNOLOGY sector median of 2.5%, placing CSCO in the 100th percentile — the highest among its peers. Trend data show a year-over-year change that is not available, but the quarter-over-quarter change is a decline of -38.8% from the prior quarter's 4.9% to the current 3.0%. The combination of a strong absolute level (top of the sector) with a sharp recent drop suggests that while cash generation remains high relative to peers, the rapid deterioration may indicate a temporary setback or a signal of growing risk. This metric supports the overall NEUTRAL verdict because the high percentile rank confirms attractive cash returns, but the negative quarter-over-quarter trend introduces caution, balancing the view.
Frequently Asked Questions
What does the FCF Yield tell investors about CSCO?
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 CSCO's FCF Yield compare to its sector?
CSCO's FCF Yield of 3.0% compares to a TECHNOLOGY sector median of 1.1%, placing it in the 83th percentile.
Who are CSCO's closest peers by FCF Yield?
The closest TECHNOLOGY peers by FCF Yield include: LRCX (1.1%), TXN (1.0%), MRVL (0.6%), MSFT (2.5%), NOW (4.5%).
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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3.0%
Sector Median
1.1%
Sector Avg
1.0%
How CSCO's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.