Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Morphic Ethical Equity FundASX:MEC 46 Forward Rate of Return (Yacktman) % is 8.81% as of Jun. 2025, which is 21% above its 10-year median of 7.29. GuruFocus rates ASX:MEC with a GF Score™ of 46/100 and a GF Value™ of A$0.76 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,163 Asset Management companies, Morphic Ethical Equity Fund ranks better than 62.25% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Morphic Ethical Equity Fund's forward rate of return for was 8.81%.
The historical rank and industry rank for Morphic Ethical Equity Fund's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ASX:MEC'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 6.46 Med: 7.29 Max: 8.81
Current: 8
During the past 7 years, Morphic Ethical Equity Fund's highest Forward Rate of Return was 8.81. The lowest was 6.46. And the median was 7.29.
ASX:MEC's Forward Rate of Return (Yacktman) % is ranked better than 62.25% of 1163
companies
in the Asset Management industry
Industry Median: 4.51
vs ASX:MEC: 8.00
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.
Morphic Ethical Equity Fund (ASX:MEC) 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 Book Value 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.
Morphic Ethical Equity Fund Forward Rate of Return (Yacktman) % Related Terms
Morphic Ethical Equity Fund Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Morphic Ethical Equity Fund'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.
Morphic Ethical Equity Fund Forward Rate of Return (Yacktman) % Chart
ASX:MEC vs BLK, BX, KKR: Forward Rate of Return (Yacktman) % Comparison
For the Asset Management subindustry, Morphic Ethical Equity Fund'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.
Morphic Ethical Equity Fund Forward Rate of Return (Yacktman) % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Morphic Ethical Equity Fund's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Morphic Ethical Equity Fund's Forward Rate of Return (Yacktman) % falls into.
Morphic Ethical Equity Fund 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).
* 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.
What does a Forward Rate of Return (Yacktman) % of 8.81% mean?
Morphic Ethical Equity Fund (ASX:MEC) has a Forward Rate of Return (Yacktman) % of 8.81% as of Jun. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Morphic Ethical Equity Fund and its competitors. This is 21% above median its historical median of 7.29. Over the past decade, Morphic Ethical Equity Fund's Forward Rate of Return (Yacktman) % has ranged from 6.46 to 8.81. According to the industry distribution chart, Morphic Ethical Equity Fund ranks #439 out of 1163 companies in the Asset Management industry, placing it in the top 37.7%.
Is Morphic Ethical Equity Fund's Forward Rate of Return (Yacktman) % too high?
Morphic Ethical Equity Fund's current Forward Rate of Return (Yacktman) % of 8.81% is 21% above median its 10-year median of 7.29. Over the past 10 years, this metric has ranged from a low of 6.46 to a high of 8.81. The Asset Management industry median Forward Rate of Return (Yacktman) % is 4.51. Morphic Ethical Equity Fund's value of 8.81% is 95.3% above this industry median. Based on the distribution chart, Morphic Ethical Equity Fund ranks #439 out of 1163 companies in the Asset Management industry, which is above the industry midpoint. Overall, Morphic Ethical Equity Fund has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morphic Ethical Equity Fund's Forward Rate of Return (Yacktman) % compare to BLK and BX?
According to the Asset Management industry distribution chart, Morphic Ethical Equity Fund ranks #439 out of 1163 companies for Forward Rate of Return (Yacktman) %. This puts Morphic Ethical Equity Fund in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 4.51. Morphic Ethical Equity Fund's value of 8.81% is 95.3% above this benchmark. Historically, Morphic Ethical Equity Fund's own Forward Rate of Return (Yacktman) % has ranged from 6.46 to 8.81 over the past decade. While the company's 10-year median is 7.29 vs. the industry median of 4.51, Morphic Ethical Equity Fund has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for an Asset Management company?
The median Forward Rate of Return (Yacktman) % among Asset Management companies is 4.51, based on 1,163 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morphic Ethical Equity Fund's current Forward Rate of Return (Yacktman) % of 8.81% is 95.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Morphic Ethical Equity Fund and its competitors. For the Asset Management industry, the median Forward Rate of Return (Yacktman) % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morphic Ethical Equity Fund's current Forward Rate of Return (Yacktman) % is 8.81%, which is 21% above median its own 10-year median of 7.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morphic Ethical Equity Fund stock overvalued right now?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund (ASX:MEC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.76, compared to a current price of A$1.21 — trading 58.6% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 8.81%, which is 21% above median its 10-year median of 7.29 and 95.3% above the Asset Management industry median of 4.51. Morphic Ethical Equity Fund's overall GF Score™ is 46/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Morphic Ethical Equity Fund (ASX:MEC), the current Forward Rate of Return (Yacktman) % is 8.81% as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Morphic Ethical Equity Fund (ASX:MEC) Overvalued in 2026?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund stock appears to be overvalued.
The current stock price of A$1.21 is trading 58.6% above its estimated GF Value™ of A$0.76.
GuruFocus considers Morphic Ethical Equity Fund to be Significantly Overvalued.
Key valuation signals for ASX:MEC:
Forward Rate of Return (Yacktman) %: 8.81% (21% above median its 10-year median of 7.29)
GF Value™: A$0.76 vs. price of A$1.21 (58.6% above fair value)
Industry Position: 95.3% above the Asset Management median (#439 of 1163)
No single metric tells the full story. See the ASX:MEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morphic Ethical Equity Fund Ltd is an investment company. Its investment objective is to provide superior risk-adjusted returns to shareholders, comprising a combination of capital growth and income, thus allowing franked dividends to be paid to shareholders when prudent, and provided the company has sufficient profit reserves and franking credits available. The company invests in a portfolio of internationally listed securities screened to exclude entities involved in environmentally damaging activities (including coal and uranium, mining and oil and gas), intensive farming and aquaculture, tobacco, armaments, alcohol, and gambling. It earns revenue from dividend income, interest income, and other returns from the investment portfolio.
46GF Score
Get the complete analysis for ASX:MEC
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:MEC has been successfully added to your 
