KO FCF Yield Analysis
Updated 5h ago·SEC filings & market data
Key Takeaway
Free cash flow yield measures the cash a company generates after capital spending relative to its market value, so 1.4% means investors get roughly $1.40 in free cash per $100 of equity price.
Sector Performance
20th percentileKO
1.4%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
1.5%(Jul 2026)
Deep Analysis
Free cash flow yield measures the cash a company generates after capital spending relative to its market value, so 1.4% means investors get roughly $1.40 in free cash per $100 of equity price.
That rate sits well below the sector median of 4.2%, placing KO at the 20th percentile among peers, meaning most comparable companies offer higher cash returns. The year-over-year change is N/A, so no annual baseline exists, but the quarter-over-quarter change is -6.7%, showing a recent decline from 1.5% to the current 1.4%. The combination of a low yield and a negative quarterly move points to limited cash-generation upside at the current price, adding a cautionary tone for investors seeking income or valuation support. This metric, however, does not force a bearish stance — a low FCF yield alone is not enough to override other valuation and growth inputs. It supports the NEUTRAL verdict, as the weak level and recent decline temper optimism without signaling a clear sell.
Frequently Asked Questions
What does the FCF Yield tell investors about KO?
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 KO's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
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.
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1.4%
Sector Median
4.2%
Sector Avg
9.2%
How KO's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.