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GrowthBuyback Yield#94

Free Cash Flow CAGR 3Y (FCF CAGR 3Y)

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Free Cash Flow CAGR 3Y expresses the rate at which the business is expanding. Value investors to size durable revenue and free cash flow expansion when Free Cash Flow CAGR 3Y aligns with the rest.

Javier Sanz, Founder & Lead Analyst at ValueMarkers
By , Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz

Formula

(Shares Repurchased x Avg Price) / Market Cap x 100

Description

Measures the value of shares repurchased as a percentage of market capitalization. Share buybacks are an alternative to dividends for returning cash to shareholders. When done at attractive prices, buybacks increase per-share value for remaining shareholders.

Interpretation

Above 2% is meaningful. Buybacks are most value-creating when done at prices below intrinsic value. Companies that buy back shares at high valuations and issue them at low valuations (via options) destroy value. Watch the actual share count to verify buybacks reduce dilution.

Related metrics: Revenue Growth 1Y, Revenue CAGR 3Y, Revenue CAGR 5Y. (Updated 2026)

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Further Reading

FAQ

How is Free Cash Flow CAGR 3Y calculated?+
Free Cash Flow CAGR 3Y uses the formula: (Shares Repurchased x Avg Price) / Market Cap x 100. compare against sector median on /screener with the Sector filter applied. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using Multi-year SEC filings + Damodaran growth-rate datasets.
What is a good Free Cash Flow CAGR 3Y value by sector?+
There is no single 'good' value for Free Cash Flow CAGR 3Y — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Free Cash Flow CAGR 3Y on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Free Cash Flow CAGR 3Y?+
Peter Lynch, Philip Fisher, Bill Miller cite Free Cash Flow CAGR 3Y as a key input to to size durable revenue and free cash flow expansion. The academic anchor is Mauboussin's 'measuring the moat' framework. ValueMarkers weights this within the Growth pillar of the VMCI score (12% of total).
What are the limitations of Free Cash Flow CAGR 3Y?+
Free Cash Flow CAGR 3Y can mislead in high growth at unsustainable unit economics (cash-burn traps). Pair Free Cash Flow CAGR 3Y with at least two cross-checks from other VMCI pillars — for example, free cash flow trend, balance-sheet quality, and earnings consistency — before drawing a single-metric conclusion.
Where can I see live Free Cash Flow CAGR 3Y data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Free Cash Flow CAGR 3Y data, sector percentiles, and the VMCI composite score that integrates Free Cash Flow CAGR 3Y with 119 other indicators across 100,000+ stocks. The free /screener exposes Free Cash Flow CAGR 3Y as a filterable column.

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