FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
AvidXchange Holdings FCF Yield % Related Terms
AvidXchange Holdings FCF Yield % Historical Data
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The historical data trend for AvidXchange Holdings's FCF Yield % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, AvidXchange Holdings's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AvidXchange Holdings FCF Yield % vs Software Industry
For the Software industry and Technology sector, AvidXchange Holdings's FCF Yield % distribution charts can be found below:
* The bar in red indicates where AvidXchange Holdings's FCF Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AvidXchange Holdings (AVDX) has a FCF Yield % of 3.03 as of Jun. 28, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on AvidXchange Holdings and its competitors.
Is AvidXchange Holdings' FCF Yield % too high?
AvidXchange Holdings' current FCF Yield % is 3.03. The Software industry median FCF Yield % is 0.90. AvidXchange Holdings' value of 3.03 is 236.7% above this industry median. Overall, AvidXchange Holdings has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does AvidXchange Holdings' FCF Yield % compare to MQ and TDC?
AvidXchange Holdings' FCF Yield % of 3.03 can be compared against companies in the Software industry. The industry median FCF Yield % is 0.90. AvidXchange Holdings' value of 3.03 is 236.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.90, based on 2,865 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AvidXchange Holdings's current FCF Yield % of 3.03 is 236.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on AvidXchange Holdings and its competitors. For the Software industry, the median FCF Yield % is 0.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AvidXchange Holdings's current FCF Yield % is 3.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AvidXchange Holdings stock overvalued right now?
AvidXchange Holdings (AVDX) has a current FCF Yield % of 3.03. The stock's GF Value™ is $12.05, compared to a current price of $10.00 — trading 17% below its estimated fair value. The current FCF Yield % is 3.03 and 236.7% above the Software industry median of 0.90. AvidXchange Holdings' overall GF Score™ is 20/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For AvidXchange Holdings (AVDX), the current FCF Yield % is 3.03 as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AvidXchange Holdings (AVDX) Overvalued in 2026?
Based on GuruFocus' analysis, AvidXchange Holdings stock appears to be undervalued.
The current stock price of $10.00 is trading 17% below its estimated GF Value™ of $12.05.
Key valuation signals for AVDX:
FCF Yield %: 3.03
GF Value™: $12.05 vs. price of $10.00 (17% below fair value)
Industry Position: 236.7% above the Software median
No single metric tells the full story. See the AVDX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AvidXchange Holdings Inc is a provider of AP automation software and payment solutions for middle-market businesses and their suppliers. It generates the majority of its sales from Payment revenue followed by Software revenue and Services revenue. The company generates revenue in the United States.
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