Samsung Life Insurance Co (XKRX:032830) Forward Rate of Return (Yacktman) %

: 19.29% (As of Jun. 2023)

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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Samsung Life Insurance Co's forward rate of return for was 19.29%.

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

XKRX:032830' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 11.53 Med: 42 Max: 82.29
Current: 17.93

During the past 13 years, Samsung Life Insurance Co's highest Forward Rate of Return was 82.29. The lowest was 11.53. And the median was 42.00.

XKRX:032830's Forward Rate of Return (Yacktman) % is ranked better than
52.26% of 266 companies
in the Insurance industry
Industry Median: 17.29 vs XKRX:032830: 17.93

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.

Samsung Life Insurance Co Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Samsung Life Insurance Co'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.

Samsung Life Insurance Co Annual Data

Trend

Mar13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Forward Rate of Return (Yacktman) %

45.77

42.32

25.41

30.56

22.31

Samsung Life Insurance Co Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Forward Rate of Return (Yacktman) %																24.52	23.94	22.31	16.20	19.29

Competitive Comparison

For the Insurance - Life subindustry, Samsung Life Insurance Co'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

Samsung Life Insurance Co Forward Rate of Return (Yacktman) % Distribution

For the Insurance industry and Financial Services sector, Samsung Life Insurance Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Samsung Life Insurance Co'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.

Samsung Life Insurance Co 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).

Samsung Life Insurance Co's Forward Rate of Return of Jun. 2023 is

Forward Rate of Return	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	13720.4047619	/	67300	+	-0.011
	=	19.29 %

Samsung Life Insurance Co (XKRX:032830) 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.

Samsung Life Insurance Co Forward Rate of Return (Yacktman) % Related Terms

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

Samsung Life Insurance Co (XKRX:032830) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Samsung Life Insurance Co Ltd (XKRX:032830) » Definitions » Forward Rate of Return (Yacktman) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Samsung Life Insurance Building, Jung-gu, SEOUL, KOR, 100-716

Website

http://www.samsunglife.com

Samsung Life is Korea's largest insurer. It has a market share of life-insurance premiums of 22%, compared with 12% each for its two biggest rivals. It owns 72% of listed Samsung Card and 30% of equity-method affiliate Samsung Securities. It also owns close to 15% of sister company Samsung Fire & Marine Insurance, Korea's largest nonlife insurer, and owns 8.5% of Samsung Electronics, a stake that is worth well in excess of its own market cap. It in turn is 49% owned by related shareholders: 10.4% by Jay Lee, 6.9% and 1.7%, respectively, by Jay Lee's sisters Boo-Jin and Seo-Hyun, 19.3% by Samsung C&T (the presumptive parent of the Samsung group), 5.9% by E-mart (a retailer whose largest shareholders are Jay Lee's aunt and cousin), and 4.7% by the Samsung Foundation of Culture.

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