Toll BrothersFRA:TLK +0.32%93 FCF Yield % is 7.92 as of Jun. 28, 2026, which is 19% below its 10-year median of 9.80. GuruFocus rates FRA:TLK with a GF Score™ of 93/100 and a GF Value™ of €117.88 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 96 Homebuilding & Construction companies, Toll Brothers ranks better than 73.96% 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.
Toll Brothers FCF Yield % Related Terms
Toll Brothers FCF Yield % Historical Data
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The historical data trend for Toll Brothers'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 Residential Construction subindustry, Toll Brothers'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.
Toll Brothers FCF Yield % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Toll Brothers'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.
Toll Brothers (FRA:TLK) has a FCF Yield % of 7.92 as of Jun. 28, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Toll Brothers and its competitors. This is 19% below median its historical median of 9.80. According to the industry distribution chart, Toll Brothers ranks #25 out of 96 companies in the Homebuilding & Construction industry, placing it in the top 26%.
Is Toll Brothers' FCF Yield % too high?
Toll Brothers' current FCF Yield % of 7.92 is 19% below median its 10-year median of 9.80. The Homebuilding & Construction industry median FCF Yield % is 2.53. Toll Brothers' value of 7.92 is 213.7% above this industry median. Based on the distribution chart, Toll Brothers ranks #25 out of 96 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Toll Brothers has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' FCF Yield % compare to NVR and IBP?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #25 out of 96 companies for FCF Yield %. This puts Toll Brothers in the upper half of its industry. The industry median FCF Yield % is 2.53. Toll Brothers' value of 7.92 is 213.7% above this benchmark. While the company's 10-year median is 9.80 vs. the industry median of 2.53, Toll Brothers 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 Homebuilding & Construction company?
The median FCF Yield % among Homebuilding & Construction companies is 2.53, based on 96 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. Toll Brothers's current FCF Yield % of 7.92 is 213.7% 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 Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median FCF Yield % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current FCF Yield % is 7.92, which is 19% below median its own 10-year median of 9.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (FRA:TLK) is currently considered Modestly Overvalued. The stock's GF Value™ is €117.88, compared to a current price of €141.40 — trading 20% above its estimated fair value. The current FCF Yield % is 7.92, which is 19% below median its 10-year median of 9.80 and 213.7% above the Homebuilding & Construction industry median of 2.53. Toll Brothers' overall GF Score™ is 93/100 with 8 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 Toll Brothers (FRA:TLK), the current FCF Yield % is 7.92 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 Toll Brothers (FRA:TLK) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of €141.40 is trading 20% above its estimated GF Value™ of €117.88.
GuruFocus considers Toll Brothers to be Modestly Overvalued.
Key valuation signals for FRA:TLK:
FCF Yield %: 7.92 (19% below median its 10-year median of 9.80)
GF Value™: €117.88 vs. price of €141.40 (20% above fair value)
Industry Position: 213.7% above the Homebuilding & Construction median (#25 of 96)
No single metric tells the full story. See the FRA:TLK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
93GF Score
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