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Red VioletFRA:2KH -2.65%69 FCF Yield % is 2.00 as of Jul. 21, 2026, which is 115% above its 10-year median of 0.93. GuruFocus rates FRA:2KH with a GF Score™ of 69/100 and a GF Value™ of €34.53 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,875 Software companies, Red Violet ranks better than 55.34% on this metric.
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.
Red Violet FCF Yield % Related Terms
Red Violet FCF Yield % Historical Data
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The historical data trend for Red Violet'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.
FRA:2KH vs GTM, MITK, IBTA: FCF Yield % Comparison
For the Software - Application subindustry, Red Violet'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.
Red Violet FCF Yield % vs Software Industry
For the Software industry and Technology sector, Red Violet's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Red Violet'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.
Red Violet (FRA:2KH) has a FCF Yield % of 2.00 as of Jul. 21, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Red Violet and its competitors. This is 115% above median its historical median of 0.93. According to the industry distribution chart, Red Violet ranks #1284 out of 2875 companies in the Software industry, placing it in the top 44.7%.
Is Red Violet's FCF Yield % too high?
Red Violet's current FCF Yield % of 2.00 is 115% above median its 10-year median of 0.93. The Software industry median FCF Yield % is 0.91. Red Violet's value of 2.00 is 119.8% above this industry median. Based on the distribution chart, Red Violet ranks #1284 out of 2875 companies in the Software industry, which is above the industry midpoint. Overall, Red Violet has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Violet's FCF Yield % compare to GTM and MITK?
According to the Software industry distribution chart, Red Violet ranks #1284 out of 2875 companies for FCF Yield %. This puts Red Violet in the upper half of its industry. The industry median FCF Yield % is 0.91. Red Violet's value of 2.00 is 119.8% above this benchmark. While the company's 10-year median is 0.93 vs. the industry median of 0.91, Red Violet has consistently been above the industry average. 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 0.91, based on 2,875 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. Red Violet's current FCF Yield % of 2.00 is 119.8% 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 Red Violet and its competitors. For the Software industry, the median FCF Yield % is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Violet's current FCF Yield % is 2.00, which is 115% above median its own 10-year median of 0.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Violet stock overvalued right now?
Based on GuruFocus' analysis, Red Violet (FRA:2KH) is currently considered Significantly Overvalued. The stock's GF Value™ is €34.53, compared to a current price of €55.00 — trading 59.3% above its estimated fair value. The current FCF Yield % is 2.00, which is 115% above median its 10-year median of 0.93 and 119.8% above the Software industry median of 0.91. Red Violet's overall GF Score™ is 69/100 with 4 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 Red Violet (FRA:2KH), the current FCF Yield % is 2.00 as of Jul. 21, 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 Red Violet (FRA:2KH) Overvalued in 2026?
Based on GuruFocus' analysis, Red Violet stock appears to be overvalued.
The current stock price of €55.00 is trading 59.3% above its estimated GF Value™ of €34.53.
GuruFocus considers Red Violet to be Significantly Overvalued.
Key valuation signals for FRA:2KH:
FCF Yield %: 2.00 (115% above median its 10-year median of 0.93)
GF Value™: €34.53 vs. price of €55.00 (59.3% above fair value)
Industry Position: 119.8% above the Software median (#1284 of 2875)
No single metric tells the full story. See the FRA:2KH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Violet Inc builds proprietary technologies and applies analytical capabilities to deliver identity intelligence. The company's solutions enable the real-time identification and location of people, businesses, assets, and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Its cloud-native, AI-enabled identity intelligence platform, CORE, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. The company generates substantially all of its revenue from licensing its solutions.
69GF Score
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