FCF Yield within the SXXP
Top 5 companies in the European index
The FCF yield is considered, for many investors, the best fundamental indicator as it emphasizes the importance of cash generation compared to the current market price. They acknowledge that these statements offer a better representation of the company's operations. Free cash flow is similar to earnings for a company without the more arbitrary adjustments made in the free cash flow in the income statement. As a result, you can use free cash flow to help measure the performance of a company in a similar way to looking at the net income line. statement.
the free cash flow yield gives investors another way to assess the value of a company that is comparable to the P/E ratio. Since this measure uses free cash flow, the free cash flow yield provides a better measure of a company's performance.
Here are the 5 companies with the highest FCF Yield NTM in the STOXX Europe 600, today:
