How Richly Priced is the Current Market Relative to Free Cash Flow?

The median EV/FCF multiple for the Russell 1000 is currently 21.54 or about 22 times FCF. Very richly priced relative to the last two decades.

Jan 30, 2024

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Executive Summary

This post explores problems in public free cash flow data that makes market comparisons difficult and presents data on the current market valuation. The EV/FCF multiple for the Russell 1000 (93% of US market cap) is currently 21.54 or about 22 times FCF. This equates to a FCF Yield of 4.6%. Below are charts showing the historical me…

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