HCL TechnologiesNSE:HCLTECH +4.24%78 FCF Yield % is 6.36 as of Jul. 03, 2026, which is 71% above its 10-year median of 3.72. GuruFocus rates NSE:HCLTECH with a GF Score™ of 78/100 and a GF Value™ of ₹1,780.49 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,868 Software companies, HCL Technologies ranks better than 74.62% 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.
HCL Technologies FCF Yield % Related Terms
HCL Technologies FCF Yield % Historical Data
* Premium members only.
The historical data trend for HCL Technologies'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.
NSE:HCLTECH vs IBM, ACN, FISV: FCF Yield % Comparison
For the Information Technology Services subindustry, HCL Technologies'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.
HCL Technologies FCF Yield % vs Software Industry
For the Software industry and Technology sector, HCL Technologies's FCF Yield % distribution charts can be found below:
* The bar in red indicates where HCL Technologies'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.
HCL Technologies (NSE:HCLTECH) has a FCF Yield % of 6.36 as of Jul. 03, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on HCL Technologies and its competitors. This is 71% above median its historical median of 3.72. Over the past decade, HCL Technologies' FCF Yield % has ranged from 0.83 to 6.63. According to the industry distribution chart, HCL Technologies ranks #728 out of 2868 companies in the Software industry, placing it in the top 25.4%.
Is HCL Technologies' FCF Yield % too high?
HCL Technologies' current FCF Yield % of 6.36 is 71% above median its 10-year median of 3.72. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 6.63. The Software industry median FCF Yield % is 0.89. HCL Technologies' value of 6.36 is 614.6% above this industry median. Based on the distribution chart, HCL Technologies ranks #728 out of 2868 companies in the Software industry, which is above the industry midpoint. Overall, HCL Technologies has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HCL Technologies' FCF Yield % compare to IBM and ACN?
According to the Software industry distribution chart, HCL Technologies ranks #728 out of 2868 companies for FCF Yield %. This puts HCL Technologies in the upper half of its industry. The industry median FCF Yield % is 0.89. HCL Technologies' value of 6.36 is 614.6% above this benchmark. Historically, HCL Technologies' own FCF Yield % has ranged from 0.83 to 6.63 over the past decade. While the company's 10-year median is 3.72 vs. the industry median of 0.89, HCL Technologies 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 0.89, based on 2,868 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. HCL Technologies's current FCF Yield % of 6.36 is 614.6% 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 HCL Technologies and its competitors. For the Software industry, the median FCF Yield % is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HCL Technologies's current FCF Yield % is 6.36, which is 71% above median its own 10-year median of 3.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HCL Technologies stock overvalued right now?
Based on GuruFocus' analysis, HCL Technologies (NSE:HCLTECH) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,780.49, compared to a current price of ₹1,078.10 — trading 39.4% below its estimated fair value. The current FCF Yield % is 6.36, which is 71% above median its 10-year median of 3.72 and 614.6% above the Software industry median of 0.89. HCL Technologies' overall GF Score™ is 78/100 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 HCL Technologies (NSE:HCLTECH), the current FCF Yield % is 6.36 as of Jul. 03, 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 HCL Technologies (NSE:HCLTECH) Overvalued in 2026?
Based on GuruFocus' analysis, HCL Technologies stock appears to be undervalued.
The current stock price of ₹1,078.10 is trading 39.4% below its estimated GF Value™ of ₹1,780.49.
GuruFocus considers HCL Technologies to be Significantly Undervalued.
Key valuation signals for NSE:HCLTECH:
FCF Yield %: 6.36 (71% above median its 10-year median of 3.72)
GF Value™: ₹1,780.49 vs. price of ₹1,078.10 (39.4% below fair value)
Industry Position: 614.6% above the Software median (#728 of 2868)
No single metric tells the full story. See the NSE:HCLTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HCL Technologies Ltd provides enterprises with IT solutions. It focuses on offering Digital, Internet of Things, Cloud, Automation, Cybersecurity, Infrastructure Management, and Engineering services to solve business problems for clients. It offers solutions to a variety of industries, including Financial Services, Public Services, Consumer Services, Healthcare, and Manufacturing. It operates in three segments: IT and Business Services, Engineering and R&D Services, and HCL Software. The firm emphasizes consultation services for firms, intending to offer them digital and design solutions. The majority of the firm's revenue comes from the IT and Business Services segment. Geographically, it derives maximum revenue from the USA, and the rest from Europe, India, and the Rest of the world.
78GF Score
Get the complete analysis for NSE:HCLTECH
FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:HCLTECH has been successfully added to your 
