PCTY FCF Yield Analysis
Updated 806h ago·SEC filings & market data
Key Takeaway
Free cash flow yield measures the annual cash a company generates from operations after capital spending, relative to its share price—so at 5.4%, PCTY returns roughly $5.40 in free cash for every $100 of market value.
Sector Performance
65th percentilePCTY
5.4%
Sector Median
4.1%
Sector Avg
9.2%
Prior Period
5.3%(Aug 2026)
Deep Analysis
Free cash flow yield measures the annual cash a company generates from operations after capital spending, relative to its share price—so at 5.4%, PCTY returns roughly $5.40 in free cash for every $100 of market value.
That places the stock at the 65th percentile among sector peers, above the sector median of 4.1%, meaning the market prices PCTY cheaper relative to its cash generation than most comparable companies. The trend is effectively flat-to-mildly-improving: the most recent quarter rose from 5.3% to 5.4%, a +1.9% quarter-over-quarter change, though year-over-year data and an eight-quarter trend are not available. With a yield already above the peer median and a slight recent uptick, the valuation appears fair rather than stretched, which reduces downside risk from a price correction. This supports the NE
Frequently Asked Questions
What does the FCF Yield tell investors about PCTY?
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.
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.
Master PCTY's Valuation
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5.4%
Sector Median
4.1%
Sector Avg
9.2%
How PCTY's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.