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.
The European Smaller TrustCHIX:ESCTL 34 Forward Rate of Return (Yacktman) % is 13.40% as of Jun. 2025, which is 18% above its 10-year median of 11.37. GuruFocus rates CHIX:ESCTL with a GF Score™ of 34/100. The stock has 5 warning signs investors should review. Among 1,172 Asset Management companies, The European Smaller Trust ranks better than 74.4% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. The European Smaller Trust's forward rate of return for was 13.40%.
The historical rank and industry rank for The European Smaller Trust's Forward Rate of Return (Yacktman) % or its related term are showing as below:
CHIX:ESCTl'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 5.82 Med: 11.37 Max: 19.68
Current: 12.86
During the past 13 years, The European Smaller Trust's highest Forward Rate of Return was 19.68. The lowest was 5.82. And the median was 11.37.
CHIX:ESCTl's Forward Rate of Return (Yacktman) % is ranked better than 74.4% of 1172
companies
in the Asset Management industry
Industry Median: 4.485
vs CHIX:ESCTl: 12.86
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.
The European Smaller Trust (CHIX:ESCTl) 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.
The European Smaller Trust Forward Rate of Return (Yacktman) % Related Terms
The European Smaller Trust Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for The European Smaller Trust'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.
The European Smaller Trust Forward Rate of Return (Yacktman) % Chart
CHIX:ESCTL vs BLK, BX, KKR: Forward Rate of Return (Yacktman) % Comparison
For the Asset Management subindustry, The European Smaller Trust'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.
The European Smaller Trust Forward Rate of Return (Yacktman) % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, The European Smaller Trust's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where The European Smaller Trust's Forward Rate of Return (Yacktman) % falls into.
The European Smaller Trust 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 13.40% mean?
The European Smaller Trust (CHIX:ESCTL) has a Forward Rate of Return (Yacktman) % of 13.40% 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 The European Smaller Trust and its competitors. This is 18% above median its historical median of 11.37. Over the past decade, The European Smaller Trust's Forward Rate of Return (Yacktman) % has ranged from 5.82 to 19.68. According to the industry distribution chart, The European Smaller Trust ranks #300 out of 1172 companies in the Asset Management industry, placing it in the top 25.6%.
Is The European Smaller Trust's Forward Rate of Return (Yacktman) % too high?
The European Smaller Trust's current Forward Rate of Return (Yacktman) % of 13.40% is 18% above median its 10-year median of 11.37. Over the past 10 years, this metric has ranged from a low of 5.82 to a high of 19.68. The Asset Management industry median Forward Rate of Return (Yacktman) % is 4.49. The European Smaller Trust's value of 13.40% is 198.8% above this industry median. Based on the distribution chart, The European Smaller Trust ranks #300 out of 1172 companies in the Asset Management industry, which is above the industry midpoint. Overall, The European Smaller Trust has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does The European Smaller Trust's Forward Rate of Return (Yacktman) % compare to BLK and BX?
According to the Asset Management industry distribution chart, The European Smaller Trust ranks #300 out of 1172 companies for Forward Rate of Return (Yacktman) %. This puts The European Smaller Trust in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 4.49. The European Smaller Trust's value of 13.40% is 198.8% above this benchmark. Historically, The European Smaller Trust's own Forward Rate of Return (Yacktman) % has ranged from 5.82 to 19.68 over the past decade. While the company's 10-year median is 11.37 vs. the industry median of 4.49, The European Smaller Trust 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 4.49, based on 1,172 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. The European Smaller Trust's current Forward Rate of Return (Yacktman) % of 13.40% is 198.8% 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 The European Smaller Trust and its competitors. For the Asset Management industry, the median Forward Rate of Return (Yacktman) % is 4.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The European Smaller Trust's current Forward Rate of Return (Yacktman) % is 13.40%, which is 18% above median its own 10-year median of 11.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The European Smaller Trust stock overvalued right now?
The European Smaller Trust (CHIX:ESCTL) has a current Forward Rate of Return (Yacktman) % of 13.40%. The current Forward Rate of Return (Yacktman) % is 13.40%, which is 18% above median its 10-year median of 11.37 and 198.8% above the Asset Management industry median of 4.49. The European Smaller Trust's overall GF Score™ is 34/100 with 5 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 The European Smaller Trust (CHIX:ESCTL), the current Forward Rate of Return (Yacktman) % is 13.40% 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.
The European Smaller Companies Trust PLC is a United Kingdom-based trust focused on capital growth through equities in smaller and medium-sized European companies. It focuses on equities from smaller and medium-sized companies quoted, domiciled, listed, or operating across Europe, excluding the UK. Its portfolio includes industrial goods, technology, financials, business providers, basic materials, consumer goods, retail providers and natural resource sectors.
34GF Score
Get the complete analysis for CHIX:ESCTL
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
CHIX:ESCTL has been successfully added to your 
