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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Compania deneamento de Minas Gerais - COPASA MG's forward rate of return for was 20.78%.
BSP:CSMG3's Forward Rate of Return (Yacktman) % is ranked better than 84.51% of 426
companies
in the Utilities - Regulated industry
Industry Median: 6.755
vs BSP:CSMG3: 21.28
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.
Compania deneamento de Minas Gerais - COPASA MG (BSP:CSMG3) 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.
Compania deneamento de Minas Gerais - COPASA MG Forward Rate of Return (Yacktman) % Related Terms
Compania deneamento de Minas Gerais - COPASA MG Forward Rate of Return (Yacktman) % Historical Data
* 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.
Compania deneamento de Minas Gerais - COPASA MG Forward Rate of Return (Yacktman) % Chart
Compania deneamento de Minas Gerais - COPASA MG Annual Data
BSP:CSMG3 vs AWK, WTRG, AWR: Forward Rate of Return (Yacktman) % Comparison
For the Utilities - Regulated Water subindustry, Compania deneamento de Minas Gerais - COPASA MG'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.
Compania deneamento de Minas Gerais - COPASA MG Forward Rate of Return (Yacktman) % vs Utilities - Regulated Industry
Compania deneamento de Minas Gerais - COPASA MG 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 20.78% mean?
Compania deneamento de Minas Gerais - COPASA MG (BSP:CSMG3) has a Forward Rate of Return (Yacktman) % of 20.78% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Compania deneamento de Minas Gerais - COPASA MG and its competitors. This is 11% below median its historical median of 23.23. According to the industry distribution chart, Compania deneamento de Minas Gerais - COPASA MG ranks #66 out of 426 companies in the Utilities - Regulated industry, placing it in the top 15.5%.
Is Compania deneamento de Minas Gerais - COPASA MG's Forward Rate of Return (Yacktman) % too high?
Compania deneamento de Minas Gerais - COPASA MG's current Forward Rate of Return (Yacktman) % of 20.78% is 11% below median its 10-year median of 23.23. The Utilities - Regulated industry median Forward Rate of Return (Yacktman) % is 6.76. Compania deneamento de Minas Gerais - COPASA MG's value of 20.78% is 207.6% above this industry median. Based on the distribution chart, Compania deneamento de Minas Gerais - COPASA MG ranks #66 out of 426 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Compania deneamento de Minas Gerais - COPASA MG has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Compania deneamento de Minas Gerais - COPASA MG's Forward Rate of Return (Yacktman) % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Compania deneamento de Minas Gerais - COPASA MG ranks #66 out of 426 companies for Forward Rate of Return (Yacktman) %. This places Compania deneamento de Minas Gerais - COPASA MG in the top 16% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 6.76. Compania deneamento de Minas Gerais - COPASA MG's value of 20.78% is 207.6% above this benchmark. While the company's 10-year median is 23.23 vs. the industry median of 6.76, Compania deneamento de Minas Gerais - COPASA MG 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 Utilities - Regulated company?
The median Forward Rate of Return (Yacktman) % among Utilities - Regulated companies is 6.76, based on 426 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. Compania deneamento de Minas Gerais - COPASA MG's current Forward Rate of Return (Yacktman) % of 20.78% is 207.6% 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 Compania deneamento de Minas Gerais - COPASA MG and its competitors. For the Utilities - Regulated industry, the median Forward Rate of Return (Yacktman) % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compania deneamento de Minas Gerais - COPASA MG's current Forward Rate of Return (Yacktman) % is 20.78%, which is 11% below median its own 10-year median of 23.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compania deneamento de Minas Gerais - COPASA MG stock overvalued right now?
Based on GuruFocus' analysis, Compania deneamento de Minas Gerais - COPASA MG (BSP:CSMG3) is currently considered Significantly Overvalued. The stock's GF Value™ is R$25.74, compared to a current price of R$56.88 — trading 121% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 20.78%, which is 11% below median its 10-year median of 23.23 and 207.6% above the Utilities - Regulated industry median of 6.76. Compania deneamento de Minas Gerais - COPASA MG's overall GF Score™ is 81/100 with 4 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 Compania deneamento de Minas Gerais - COPASA MG (BSP:CSMG3), the current Forward Rate of Return (Yacktman) % is 20.78% as of Jun. 2026. 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 Compania deneamento de Minas Gerais - COPASA MG (BSP:CSMG3) Overvalued in 2026?
Based on GuruFocus' analysis, Compania deneamento de Minas Gerais - COPASA MG stock appears to be overvalued.
The current stock price of R$56.88 is trading 121% above its estimated GF Value™ of R$25.74.
GuruFocus considers Compania deneamento de Minas Gerais - COPASA MG to be Significantly Overvalued.
Key valuation signals for BSP:CSMG3:
Forward Rate of Return (Yacktman) %: 20.78% (11% below median its 10-year median of 23.23)
GF Value™: R$25.74 vs. price of R$56.88 (121% above fair value)
Industry Position: 207.6% above the Utilities - Regulated median (#66 of 426)
No single metric tells the full story. See the BSP:CSMG3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compania de Saneamento de Minas Gerais - COPASA MG provides water supply, sewage, and solid waste services. The company operates out of subsidiaries COPASA Servicos de Irrigacao S.A., COPASA Aguas Minerais de Minas S.A, and COPANOR. COPASA Servicos de Irrigacao S.A. manages, performs, and sells irrigation system services. COPASA Aguas Minerais de Minas S.A. produces, bottles, distributes, and sells mineral water. COPANOR provides water supply and sewage treatment services across the North and Northeast regions of the State of Minas Gerais. A majority of revenue is derived from water services while the rest is derived from sewage services. The company operates out of Brazil, where an amount of revenue is generated.
81GF Score
Get the complete analysis for BSP:CSMG3
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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