FCF Yield
Higher than 28% of Financial Services sector peers
Updated 216h ago
Sector Performance
28th percentileV
3.4%
Sector Median
6.2%
Sector Avg
43.2%
Deep Analysis
Visa’s current free cash flow (FCF) yield of 3.4% means that for every dollar invested in the stock, the company generates about 3.4 cents in free cash (the cash left after operating and capital expenses).
This is well below the Financial Services sector median of 6.5%, placing the stock in the 26th percentile among its peers, which indicates a lower cash return relative to the industry. Over the last year, the FCF yield declined by 2.9%, though it improved 3.0% from the prior quarter, and the eight-quarter trend has been stable, with values fluctuating between 3.3% and 3.6%. The combination of a below-median yield and a stable trend suggests limited immediate risk from further deterioration, but also no clear upside catalyst from cash generation alone. This metric does not contradict the overall NEUTRAL verdict—the low percentile rank supports caution, while the stable trend offers no strong reason to deviate from a neutral stance.
Frequently Asked Questions
What does the FCF Yield tell investors about V?
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 V's FCF Yield compare to its sector?
V's FCF Yield of 3.4% compares to a Financial Services sector median of 6.2%, placing it in the 28th percentile.
Who are V's closest peers by FCF Yield?
The closest Financial Services peers by FCF Yield include: AMP (6.2%), ARES (6.1%), COIN (6.1%), SCHW (5.6%), PNC (5.3%).
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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3.4%
Sector Median
6.2%
Sector Avg
43.2%
How V's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.