NOWNEUTRAL

NOW FCF Yield Analysis

4.8%

Higher than 82% of TECHNOLOGY sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

A 4.8% free cash flow yield means the company generates annual free cash flow equal to 4.8% of its current market value, giving investors a sense of the cash return relative to price.

Sector Performance

82th percentile

NOW

4.8%

Sector Median

1.3%

Sector Avg

2.3%

Prior Period

4.5%(Jul 2026)

↑ Improving

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Deep Analysis

A 4.8% free cash flow yield means the company generates annual free cash flow equal to 4.8% of its current market value, giving investors a sense of the cash return relative to price.

That figure sits well above the sector median of 1.2%, placing NOW in the 82nd percentile among technology peers. The year-over-year change is N/A, while the quarter-over-quarter change is +6.7%, moving from 4.5% to 4.8% in the latest period. With only two historical values available and no longer-term trend data, the positive quarterly move shows recent improvement but lacks confirmation. The combination of a high percentile rank and a recent uptick suggests lower cash-flow risk

Frequently Asked Questions

What does the FCF Yield tell investors about NOW?

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 NOW's FCF Yield compare to its sector?

NOW's FCF Yield of 4.8% compares to a TECHNOLOGY sector median of 1.3%, placing it in the 82th percentile.

Who are NOW's closest peers by FCF Yield?

The closest TECHNOLOGY peers by FCF Yield include: KLAC (1.3%), LRCX (1.2%), HPE (1.0%), TXN (1.0%), MRVL (0.6%).

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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.