FCF Yield
Higher than 33% of Technology sector peers
Updated 25h ago
Sector Performance
33th percentileNVDA
2.0%
Sector Median
2.7%
Sector Avg
2.0%
Deep Analysis
NVIDIA's current Free Cash Flow (FCF) Yield of 2.0% means that for every $100 you invest in the stock, the company generates about $2.00 in free cash flow per year — a measure of how much cash remains after operating expenses and capital investments.
This yield sits below the technology sector median of 2.7%, placing NVIDIA at the 33rd percentile among its peers, indicating lower cash generation relative to most other tech stocks. Over the last eight quarters the metric has been stable, with a year-over-year decline of -4.8% but a quarter-over-quarter increase of +5.3%. The combination of a below-median yield and a stable trend suggests limited immediate cash-flow opportunity but no worsening risk, though the narrow yield offers a thin margin of safety. This metric partially contradicts the overall BULLISH verdict, as the FCF Yield is below average and shows a negative annual change, but the stable quarter-to-quarter improvement tempers the concern.
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 2.0% compares to a Technology sector median of 2.7%, placing it in the 33th percentile.
Who are NVDA's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: KLIC (1.5%), IAC (1.5%), AVGO (1.5%), DDOG (1.4%), SMTC (1.2%).
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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2.0%
Sector Median
2.7%
Sector Avg
2.0%
How NVDA's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.