Free cash flow growth, three years (FCF CAGR 3Y)
The compound annual growth of free cash flow over three years.
Three years is the shortest span over which lumpy cash flow starts to mean something.
How it is computed here
Compound annual growth rate of free cash flow over three years
Computed across several filed fiscal years. Filed under growth. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Meaningless when either endpoint is negative.
- Highly sensitive to the base year.
Questions
How is free cash flow growth, three years calculated?
Compound annual growth rate of free cash flow over three years. Computed across several filed fiscal years.
What does free cash flow growth, three years tell a value investor?
Three years is the shortest span over which lumpy cash flow starts to mean something.
When does free cash flow growth, three years mislead?
Meaningless when either endpoint is negative. Highly sensitive to the base year.