FCF Yield
Higher than 13% of Communication Services sector peers
Updated 193h ago
Sector Performance
13th percentileGOOG
1.8%
Sector Median
3.1%
Sector Avg
3.6%
Deep Analysis
Alphabet’s free cash flow (FCF) yield of 1.8% means that for every $100 you invest in the stock, the company generated $1.80 in free cash — cash left after operating and capital expenses.
This is far below the Communication Services sector median of 3.2%, placing Alphabet in the 17th percentile among its peers, meaning 83% of sector competitors offer a higher yield. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 5.3% (from 1.9% to 1.8% most recently). The combination of a low yield and a shrinking trend points to limited cash-return potential relative to the stock price, which raises the risk that the current valuation may not be supported by underlying cash generation. Because the overall verdict on this stock is BULLISH, this weak FCF yield directly contradicts that positive outlook — investors should weigh why the bullish case expects future improvement despite deteriorating cash-flow efficiency.
Frequently Asked Questions
What does the FCF Yield tell investors about GOOG?
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 GOOG's FCF Yield compare to its sector?
GOOG's FCF Yield of 1.8% compares to a Communication Services sector median of 3.1%, placing it in the 13th percentile.
Who are GOOG's closest peers by FCF Yield?
The closest Communication Services peers by FCF Yield include: META (3.1%), SNAP (3.2%), SPOT (3.0%), TWLO (3.3%), NFLX (2.7%).
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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1.8%
Sector Median
3.1%
Sector Avg
3.6%
How GOOG's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.