FCF Yield takes Free Cash Flow and divides it by the company's market capitalization, turning it into a percentage you can compare across companies regardless of size. Think of it like a cash 'interest rate' on your investment: a 5% FCF yield means the company is generating cash equal to 5% of its entire market value every year. Higher is generally better — it suggests you're paying a reasonable price for real cash generation. A very low or negative FCF yield doesn't automatically mean 'avoid' — it might mean the company is investing heavily for future growth — but it does mean you're paying more today for less current cash generation, so the growth story needs to actually deliver.