GURUFOCUS.COM » STOCK LIST » USA » NYSE » TotalEnergies SE (NYSE:TTE) » Definitions » Forward Rate of Return (Yacktman) %
Switch to:

TotalEnergies SE Forward Rate of Return (Yacktman) %

: 10.99% (As of Jun. 2022)
View and export this data going back to 1991. Start your Free Trial

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. TotalEnergies SE's forward rate of return for was 10.99%.

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

TTE' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -14.62   Med: -3.78   Max: 11.01
Current: 10.62

During the past 13 years, TotalEnergies SE's highest Forward Rate of Return was 11.01. The lowest was -14.62. And the median was -3.78.

TTE's Forward Rate of Return (Yacktman) % is ranked better than
59.66% of 590 companies
in the Oil & Gas industry
Industry Median: 6.28 vs TTE: 10.62

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.


TotalEnergies SE Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for TotalEnergies SE'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.

TotalEnergies SE Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -10.89 -4.34 5.40 5.03 5.29

TotalEnergies SE Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Forward Rate of Return (Yacktman) % 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 Premium Member Only Premium Member Only Premium Member Only 4.39 4.03 5.29 7.14 10.99

Competitive Comparison

For the Oil & Gas Integrated subindustry, TotalEnergies SE'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.

   

TotalEnergies SE Forward Rate of Return (Yacktman) % Distribution

For the Oil & Gas industry and Energy sector, TotalEnergies SE's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



TotalEnergies SE 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).

TotalEnergies SE's Forward Rate of Return of Jun. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=4.58266667/52.64+0.0322
=11.93 %

* 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.


TotalEnergies SE  (NYSE:TTE) 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.


TotalEnergies SE Forward Rate of Return (Yacktman) % Related Terms

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


TotalEnergies SE Business Description

TotalEnergies SE logo
Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » TotalEnergies SE (NYSE:TTE) » Definitions » Forward Rate of Return (Yacktman) %
Address
2 Place Jean Millier, Tour Coupole, Paris la Defense cedex, Courbevoie, FRA, 92400
TotalEnergies SE is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2020, it produced 1.5 million barrels of liquids and 7.2 billion cubic feet of natural gas per day. At year-end 2020, reserves stood at 12.3 billion barrels of oil equivalent, 43% of which are liquids. The company operates refineries with a capacity of nearly 2.0 million barrels a day, primarily in Europe, distributes refined products in 65 countries, and manufactures commodity and specialty chemicals. It also holds a 19% interest in Russian oil company Novatek.

TotalEnergies SE Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)