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.
Varun Beverages FCF Yield % Related Terms
Varun Beverages FCF Yield % Historical Data
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The historical data trend for Varun Beverages'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 Beverages - Non-Alcoholic subindustry, Varun Beverages'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.
Varun Beverages FCF Yield % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Varun Beverages's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Varun Beverages'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.
Varun Beverages (NSE:VBL) has a FCF Yield % of 0.44 as of Jul. 02, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Varun Beverages and its competitors. According to the industry distribution chart, Varun Beverages ranks #78 out of 117 companies in the Beverages - Non-Alcoholic industry, placing it in the top 66.7%.
Is Varun Beverages' FCF Yield % too high?
Varun Beverages' current FCF Yield % is 0.44. The Beverages - Non-Alcoholic industry median FCF Yield % is 3.14. Varun Beverages' value of 0.44 is 86% below this industry median. Based on the distribution chart, Varun Beverages ranks #78 out of 117 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, Varun Beverages has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varun Beverages' FCF Yield % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Varun Beverages ranks #78 out of 117 companies for FCF Yield %. This places Varun Beverages in the lower half of its industry. The industry median FCF Yield % is 3.14. Varun Beverages' value of 0.44 is 86% below 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 Beverages - Non-Alcoholic company?
The median FCF Yield % among Beverages - Non-Alcoholic companies is 3.14, based on 117 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. Varun Beverages's current FCF Yield % of 0.44 is 86% below 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 Varun Beverages and its competitors. For the Beverages - Non-Alcoholic industry, the median FCF Yield % is 3.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current FCF Yield % is 0.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varun Beverages stock overvalued right now?
Based on GuruFocus' analysis, Varun Beverages (NSE:VBL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹575.18, compared to a current price of ₹515.70 — trading 10.3% below its estimated fair value. The current FCF Yield % is 0.44 and 86% below the Beverages - Non-Alcoholic industry median of 3.14. Varun Beverages' overall GF Score™ is 96/100 with 5 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 Varun Beverages (NSE:VBL), the current FCF Yield % is 0.44 as of Jul. 02, 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 Varun Beverages (NSE:VBL) Overvalued in 2026?
Based on GuruFocus' analysis, Varun Beverages stock appears to be undervalued.
The current stock price of ₹515.70 is trading 10.3% below its estimated GF Value™ of ₹575.18.
GuruFocus considers Varun Beverages to be Modestly Undervalued.
Key valuation signals for NSE:VBL:
FCF Yield %: 0.44
GF Value™: ₹575.18 vs. price of ₹515.70 (10.3% below fair value)
Industry Position: 86% below the Beverages - Non-Alcoholic median (#78 of 117)
No single metric tells the full story. See the NSE:VBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varun Beverages Ltd is engaged in manufacturing, selling, bottling, and distribution of beverages of the Pepsi brand in geographically pre-defined territories of India, Sri Lanka, Nepal, Zambia, Morocco, and Zimbabwe. Its brands include Seven-Up, Mountain Dew, Mirinda, Nimbooz, Tropicana Slice, and other related products. The firm generates a majority of its revenue within India.
96GF Score
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