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Innovative Payment Solutions (Innovative Payment Solutions) Forward Rate of Return (Yacktman) % : 0.00% (As of Dec. 2023)


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What is Innovative Payment Solutions Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Innovative Payment Solutions's forward rate of return for was 0.00%.

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

IPSI's Forward Rate of Return (Yacktman) % is not ranked *
in the Software industry.
Industry Median: 13.22
* Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.

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.


Innovative Payment Solutions Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Innovative Payment Solutions'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.

Innovative Payment Solutions Forward Rate of Return (Yacktman) % Chart

Innovative Payment Solutions Annual Data
Trend Oct14 Oct15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Forward Rate of Return (Yacktman) %
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Innovative Payment Solutions Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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Competitive Comparison of Innovative Payment Solutions's Forward Rate of Return (Yacktman) %

For the Software - Infrastructure subindustry, Innovative Payment Solutions'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.


Innovative Payment Solutions's Forward Rate of Return (Yacktman) % Distribution in the Software Industry

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

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



Innovative Payment Solutions 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).

Innovative Payment Solutions's Forward Rate of Return of Dec. 2023 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/0.26375+0
=0.00 %

* 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.


Innovative Payment Solutions  (OTCPK:IPSI) 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.


Innovative Payment Solutions Forward Rate of Return (Yacktman) % Related Terms

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


Innovative Payment Solutions (Innovative Payment Solutions) Business Description

Traded in Other Exchanges
N/A
Address
56B 5th Street, Lot 1, Suite AT, Carmel by the Sea, CA, USA, 93921
Innovative Payment Solutions Inc provides an integrated network of kiosks, terminals, and payment channels that enable consumers to deposit cash, convert it into a digital form, and remit the funds to any merchant in its network quickly and securely.
Executives
Richard Rosenblum 10 percent owner, other: President and CFO 19 HORIZON DRIVE, WAYNE NJ 07470
David F Rios director 14924 DIDUCA WAY, LOS GATOS CA 95032
Clifford W. Henry director PO BOX 1148, ZEPHYR COVE NV 89449-1148
Madisson Gracee Corbett director 19355 BUSINESS CENTER DRIVE., #9, NORTHRIDGE CA 91324
James W Fuller director C/O BAYTREE CAPITAL ASSOCIATES LLC, 40 WALL STREET, 58TH FLOOR, NEW YORK NY 10005
Andrey Novikov director, officer: CHIEF TECHNOLOGY OFFICER 19355 BUSINESS CENTER DRIVE , #9, NORTHRIDG CA 91324
William D. Corbett director, officer: Chief Executive Officer 1720 W DIVISION STREET, 3RD FLOOR, CHICAGO IL 606622
Jimmy I Gibbs 10 percent owner 9855 WARREN H. ABERNATHY HIGHWAY, SPARTANBURG SC 29301
Mark John Korb officer: Chief Financial Officer 1900 GLADES ROAD, SUITE 435, BOCA RATON FL 33431
Gaston Singh Pereira director, officer: Chairman of the Board and CEO 1900 GLADES ROAD, SUITE 265, BOCA RATON FL 33431
Sarmad Singh Harake director 1900 GLADES ROAD, SUITE 265, BOCA RATON NY 33431

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