FCF Yield
Higher than 13% of Communication Services sector peers
Updated 169h ago
Sector Performance
13th percentileGOOGL
1.8%
Sector Median
3.1%
Sector Avg
3.6%
Deep Analysis
With a current FCF Yield of 1.8%, Alphabet returns only $1.80 in free cash flow for every $100 of its market capitalization—a low cash-on-cash return compared to the Communication Services sector median of 3.2%.
The company sits at the 11th percentile among sector peers, meaning 89% of peers offer a higher yield. Over the last eight quarters the metric has been stable, though it declined 5.3% year-over-year while improving 12.5% quarter-over-quarter. The low level combined with a broadly stable trend suggests limited downside risk from deterioration but also weak current cash generation relative to value; the recent quarterly uptick offers a modest opportunity if sustained. This metric contradicts the overall BULLISH verdict, as a yield far below the peer median and sector average does not support an optimistic view on the stock's cash-flow attractiveness.
Frequently Asked Questions
What does the FCF Yield tell investors about GOOGL?
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 GOOGL's FCF Yield compare to its sector?
GOOGL's FCF Yield of 1.8% compares to a Communication Services sector median of 3.1%, placing it in the 13th percentile.
Who are GOOGL'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 GOOGL's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.