The FCF yields of the companies compared against the S&P 500
Here are the FCF yields of the companies in my portfolio, compared against the S&P 500 $S&P 500(.SPX)$ .
While the yields may appear expensive, the growth rates are considerably higher than the S&P 500 average.
Multiplying the FCF yield by the FCFps CAGR contextualises valuation by accounting for growth. Therefore, it's my view that all 12 companies have a far more attractive valuation than the S&P 500 index.
Additionally, these companies are also above average in their quality.
$Applied Materials(AMAT)$ $Visa(V)$ $MSCI Inc(MSCI)$ $MasterCard(MA)$ $KLA-Tencor(KLAC)$ $Fortinet(FTNT)$ $NVIDIA(NVDA)$ $Cadence Design(CDNS)$ $Fair Isaac(FICO)$
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