GURUFOCUS.COM » STOCK LIST » Technology » Software » ePlus Inc (NAS:PLUS) » Definitions » Forward Rate of Return (Yacktman) %
中文

ePlus (PLUS) Forward Rate of Return (Yacktman) % : 17.59% (As of Dec. 2023)


View and export this data going back to 1996. Start your Free Trial

What is ePlus Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. ePlus's forward rate of return for was 17.59%.

The historical rank and industry rank for ePlus's Forward Rate of Return (Yacktman) % or its related term are showing as below:

PLUS' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.88   Med: 13.15   Max: 19.99
Current: 17.58

During the past 13 years, ePlus's highest Forward Rate of Return was 19.99. The lowest was 3.88. And the median was 13.15.

PLUS's Forward Rate of Return (Yacktman) % is ranked better than
60.68% of 1198 companies
in the Software industry
Industry Median: 13.46 vs PLUS: 17.58

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


ePlus Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for ePlus's Forward Rate of Return (Yacktman) % 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.

* Premium members only.

ePlus Forward Rate of Return (Yacktman) % Chart

ePlus Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.64 7.62 10.66 12.61 15.19

ePlus Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Forward Rate of Return (Yacktman) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.04 15.19 15.26 16.90 17.59

Competitive Comparison of ePlus's Forward Rate of Return (Yacktman) %

For the Software - Application subindustry, ePlus's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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.


ePlus's Forward Rate of Return (Yacktman) % Distribution in the Software Industry

For the Software industry and Technology sector, ePlus's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where ePlus's Forward Rate of Return (Yacktman) % falls into.



ePlus Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

ePlus's Forward Rate of Return of Dec. 2023 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=1.10780952/79.84+0.162
=17.59 %

* 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.


ePlus  (NAS:PLUS) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


ePlus Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of ePlus's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


ePlus (PLUS) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » ePlus Inc (NAS:PLUS) » Definitions » Forward Rate of Return (Yacktman) %
Traded in Other Exchanges
Address
13595 Dulles Technology Drive, Herndon, VA, USA, 20171-3413
ePlus Inc is a holding company. ePlus through its subsidiaries provides information technology solutions. The company's technology solutions enable organizations to optimize their IT environment and supply chain processes. It also provides consulting, professional and managed services, and complete lifecycle management services including flexible financing solutions. ePlus focuses on selling to medium and large enterprises in the United States and to customers in select international markets including the United Kingdom, the European Union, India, Singapore, and Israel..
Executives
Darren S Raiguel officer: Chief Operating Officer 25850 YELLOW BIRCH COURT, ALDIE VA 20105
Elaine D Marion officer: Chief Financial Officer 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Renee Bergeron director 1347 PANINI DRIVE, HENDERSON NV 89052
John E Callies director 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171
Ira A Hunt director 1051 DEAD RUN DRIVE, MCLEAN VA 22101
Maureen F Morrison director C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
Ben Xiang director 15 MACARTHUR PLACE, UNIT 1604, SANTA ANA CA 92707
Eric D Hovde 10 percent owner 122 W. WASHINGTON AVENUE, SUITE 350, MADISON WI 53703
Bruce M Bowen director, officer: Executive Vice President C/O EPLUS INC., 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Mark P Marron director, officer: Chief Executive Officer
Lawrence S Herman director C/O EPLUS INC, 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Faulders C Thomas Iii director 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Phillip G Norton director, 10 percent owner, officer: President/CEO C/O EPLUS INC., 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Terrence Odonnell director 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413
Steven J Mencarini officer: SVP/CFO C/O EPLUS INC., 13595 DULLES TECHNOLOGY DRIVE, HERNDON VA 20171-3413