FCF Yield
Higher than 20% of Technology sector peers
Updated 18h ago
Sector Performance
20th percentileMSFT
1.9%
Sector Median
3.4%
Sector Avg
1.1%
Deep Analysis
Microsoft Corporation (MSFT) has a FCF Yield of 1.9% as of May 2026.
This places MSFT in the 20th percentile of the Technology sector, which has a median FCF Yield of 3.4% and a sector average of 1.1%. MSFT's FCF Yield is 44.1% below the sector median. In context: 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.
Frequently Asked Questions
What does the FCF Yield tell investors about MSFT?
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 MSFT's FCF Yield compare to its sector?
MSFT's FCF Yield of 1.9% compares to a Technology sector median of 3.4%, placing it in the 20th percentile.
Who are MSFT's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: U (2.2%), TSM (2.2%), SMTC (2.2%), NVDA (2.1%), MTSI (2.0%).
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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1.9%
Sector Median
3.4%
Sector Avg
1.1%
How MSFT's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.