OPEN-SOURCE SCRIPT

FCF Yield - cristianhkr

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This indicator is a fundamental valuation tool that calculates Free Cash Flow Yield in real-time. Unlike standard indicators, this script solves the data gap for European companies reporting semi-annually and allows for short-term projections.

What is FCF Yield?
It is the real "interest rate" a company generates relative to its current market price.

Formula: FCF Yield = (Free Cash Flow / Market Cap) * 100


Key Features:
  1. Timeframe Flexibility: Switch between TTM (Trailing Twelve Months), FY (Fiscal Year), and FQ (Fiscal Quarter).
  2. Smart Fallback System: Essential for European stocks. If you select "Quarter" for a company that only reports semi-annually (like many European ones: Adidas, LVMH, Pluxee), the script automatically detects and uses the Semi-Annual (FH) data instead of showing an error.
  3. Projection/Annualization: Option to annualize short-term data (multiplies Quarters x4 or Semi-Annuals x2) to estimate annual yield based on the last report.
  4. Intuitive Visualization: Green area for positive cash generation and red for cash burn.


Interpretation Guide (Fundamental):
  • 5%: Generally indicates an attractive valuation (the company generates significant cash relative to its price).
  • < 2%: The company might be overvalued or is a high-growth company reinvesting everything. Negative: The company is burning cash (liquidity risk or early expansion phase).

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