Free Cash Flow (FCF)
Free cash flow is cash generated from operations minus capital expenditures — the cash a business actually produces after funding its own growth. It is often viewed as a cleaner measure of financial health than reported earnings because it is harder to manipulate with accounting choices.
Seen in a real earnings call
“…stock is undervalued. We are generating double-digit free cash flow yield, which we expect to be able to do that sustainably at current share prices. So look, as share price moves up, and we see that free cash flow yield come back down maybe down into…”Koppers Holdings Inc. (KOP) — earnings call, September 17, 2026