Value Line (NAS:VALU) Forward Rate of Return (Yacktman) %

: 0.00% (As of Jan. 2023)

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

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

VALU' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -17.63 Med: -0.29 Max: 24.22
Current: 23.18

During the past 13 years, Value Line's highest Forward Rate of Return was 24.22. The lowest was -17.63. And the median was -0.29.

VALU's Forward Rate of Return (Yacktman) % is ranked better than
81.72% of 465 companies
in the Capital Markets industry
Industry Median: 10.88 vs VALU: 23.18

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.

Value Line Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Value Line'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.

Value Line Annual Data

Trend

Apr13

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Forward Rate of Return (Yacktman) %

-4.47

-2.69

10.45

23.01

Value Line Quarterly Data
	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23
Forward Rate of Return (Yacktman) %																22.65	-	-	-	-

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Value Line'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.

Annual Data Quarterly Data

Value Line Forward Rate of Return (Yacktman) % Distribution

For the Capital Markets industry and Financial Services sector, Value Line's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Value Line's Forward Rate of Return (Yacktman) % falls in comparison to its industry or sector. The grey bar indicates the Forward Rate of Return (Yacktman) %'s extreme value range as defined by GuruFocus.

Value Line 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).

Value Line's Forward Rate of Return of Jan. 2023 is

Forward Rate of Return	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	1.56019048	/	51.71	+	0.2
	=	23.02 %

Value Line (NAS:VALU) 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.

Value Line Forward Rate of Return (Yacktman) % Related Terms

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

Value Line (NAS:VALU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Value Line Inc (NAS:VALU) » Definitions » Forward Rate of Return (Yacktman) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001

Website

https://www.valueline.com

Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.

Executives

Glenn J. Muenzer	director	357 HARVARD COURT, EAST MEADOW NY 11554
Howard A Brecher	director, officer: Acting Chairman and Acting CEO	VALUE LINE 220 E 42ND ST, SUITE 600, NEW YORK NY 10017
Mary Bernstein	director	220 E 42ND STREET, NEW YORK NY 10017
Alfred R Fiore	director	1 ANGORA ROAD, WESTPORT CT 06880
William Edward Reed	director	12 KNORR STREET, NORWALK CT 06854
Stephen P Davis	director	57 EAST 95TH STREET, NEW YORK NY 10128
Thomas Sarkany	director, officer: Secretary	220 EAST 42ND STREET, 6TH FLOOR, NEW YORK NY 10017
Robert M. Perkins,	director	220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017
Ruth O. Legon,	director	220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017
Janet Eakman	director	220 E 42ND STREET, NEW YORK NY 10017
Mitchell Eric Appel	officer: CFO	VALUE LINE INC, 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017
Edward J Shanahan	director	220 EAST 42 STREET, NEW YORK NY 10017
Marianne B Asher	director
Arnold Bernhard & Co Inc	10 percent owner	220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017
Edgar A Buttner	director	C/O VALUE LINE, 220 E 42ND STREET, NEW YORK NY 10017