FCF Yield Increased In Five All Cap Index Sectors Through Q3 2021
0FCF Yield Increased In Five All Cap Index Sectors Through Q3 2021 This report is an abridged and free version of All Cap Index Sectors: Free Cash Flow Yield Through 3Q21, one of our quarterly series on fundamental market and sector trends. Key points: The Aggregate methodology provides a straightforward look at the entire NC 2000/sector, regardless of market cap or index weighting, and matches how SP Global calculates metrics for the SP 500. These market-weighted methodologies add more value for ratios that do not include market values, e.g., ROIC and its drivers, but we include them here, nonetheless, for comparison. Market-weighted metrics – calculated by market-cap-weighting the trailing FCF yield for the individual companies relative to their sector or the overall NC 2000in each period. Details: Company weight equals the company’s market cap divided by the market cap of the NC 2000/its sector We multiply each company’s trailing FCF yield by its weight NC 2000/Sector trailing FCF yield equals the sum of the weighted trailing FCF yields for all the companies in NC 2000/sector Market-weighted drivers – calculated by market-cap-weighting the FCF and enterprise value for the individual companies in each sector in each period.