NVDA FCF Yield Analysis
Higher than 36% of Technology sector peers
Updated 249h ago·SEC filings & market data
Key Takeaway
The FCF yield measures the cash a company generates from its operations after capital spending, relative to its stock price—so 1.8% means NVIDIA produces $1.80 in free cash flow for every $100 of market value.
Sector Performance
36th percentileNVDA
1.8%
Sector Median
2.5%
Sector Avg
3.9%
Prior Period
1.9%(Jul 2026)
Deep Analysis
The FCF yield measures the cash a company generates from its operations after capital spending, relative to its stock price—so 1.8% means NVIDIA produces $1.80 in free cash flow for every $100 of market value.
That is below the sector median of 2.4%, placing NVIDIA at the 38th percentile among Technology peers. The metric is decreasing: the most recent quarter fell 5.3% quarter-over-quarter, and the prior three readings were 1.8%, 1.9%, and 2.0% (most recent first), with the year-over-year change not available. A yield below the median that is also trending downward indicates investors are paying more for each unit of cash flow, reducing the margin of safety and raising the risk that cash returns will lag the sector. This contradicts the overall BULLISH verdict, since a weakening FCF yield suggests the stock’s cash generation is not keeping pace with its price appreciation.
Frequently Asked Questions
What does the FCF Yield tell investors about NVDA?
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 NVDA's FCF Yield compare to its sector?
NVDA's FCF Yield of 1.8% compares to a Technology sector median of 2.5%, placing it in the 36th percentile.
Who are NVDA's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: SMAR (2.4%), ANSS (2.6%), AAPL (2.2%), AMBA (2.1%), MODN (2.0%).
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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1.8%
Sector Median
2.5%
Sector Avg
3.9%
How NVDA's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.