URS (FRA:URS) Forward Rate of Return (Yacktman) % : 13.04% (As of Jun. 2014)

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

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. URS's forward rate of return for was 13.04%.

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

FRA:URS' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -15 Med: 10.9 Max: 30.9
Current: 22.85

During the past 13 years, URS's highest Forward Rate of Return was 30.90. The lowest was -15.00. And the median was 10.90.

FRA:URS's Forward Rate of Return (Yacktman) % is not ranked
in the Construction industry.
Industry Median: 6.74 vs FRA:URS: 22.85

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.

URS Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for URS'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.

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URS Forward Rate of Return (Yacktman) % Chart

URS Annual Data

Trend

Oct04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Forward Rate of Return (Yacktman) %

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30.41

25.91

15.38

13.54

11.42

URS Quarterly Data
	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14
Forward Rate of Return (Yacktman) %	Get a 7-Day Free Trial															10.66	10.44	11.42	10.89	13.04

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

For the Engineering & Construction subindustry, URS'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.

URS's Forward Rate of Return (Yacktman) % Distribution in the Construction Industry

For the Construction industry and Industrials sector, URS's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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

URS 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).

URS's Forward Rate of Return of Jun. 2014 is

Forward Rate of Return	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	3.87238095	/	32.722	+	0.1171
	=	23.54 %

URS (FRA:URS) 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.

URS Forward Rate of Return (Yacktman) % Related Terms

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

URS (FRA:URS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » URS Corp (FRA:URS) » Definitions » Forward Rate of Return (Yacktman) %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.urscorp.com

URS Corporation was originally incorporated in California on May 1, 1957 under the former name of Broadview Research Corporation. On May 18, 1976, it re-incorporated in Delaware under the name URS Corporation. After several additional name changes, it re-adopted the name 'URS Corporation' on February 21, 1990. The Company is an international provider of engineering, construction and technical services. It offers a range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients around the world. It is also a U.S. federal government contractor in the areas of systems engineering and technical assistance, and operations and maintenance. The Company expertise is focused in four market sectors: power, infrastructure, federal, and industrial and commercial. Within these markets, it offers a broad range of services, including program management; planning, design and engineering; systems engineering and technical assistance; IT services; construction and construction management; operations and maintenance; and decommissioning and closure. In the power sector, the Company plans, designs, engineers, constructs, retrofits and maintains a wide range of power-generating facilities, as well as the systems that transmit and distribute electricity. Its services include planning, siting and licensing, permitting, engineering, procurement, construction and construction management, facility start-up, operations and maintenance, upgrades and modifications, and decommissioning and closure. It provides these services to utilities, industrial co-generators, independent power producers, original equipment manufacturers and government utilities. In the infrastructure sector, the Company plans, designs, engineers, constructs, retrofits and maintains a wide range of power-generating facilities, as well as the systems that transmit and distribute electricity. Its services include planning, siting and licensing, permitting, engineering, procurement, construction and construction management, facility start-up, operations and maintenance, upgrades and modifications, and decommissioning and closure. As a contractor to the U.S. federal government and national governments of other countries, it serves a wide variety of government departments and agencies, including the DOD, DHS, Department of Energy, as well as the General Services Administration, the Environmental Protection Agency, NASA and other federal agencies. The Company's services range from program management; planning, design and engineering; systems engineering and technical assistance; and IT services to construction and construction management; operations and maintenance; and decommissioning and closure. In industrial and commercial sector it provides a wide range of engineering, procurement and construction services for new industrial and commercial

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