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FSCO (FS Credit Opportunities) Forward Rate of Return (Yacktman) % : 0.00% (As of Dec. 2024)


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What is FS Credit Opportunities Forward Rate of Return (Yacktman) %?

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

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

FSCO's Forward Rate of Return (Yacktman) % is not ranked *
in the Asset Management industry.
Industry Median: 5.025
* Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.

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.


FS Credit Opportunities Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for FS Credit Opportunities'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.

FS Credit Opportunities Forward Rate of Return (Yacktman) % Chart

FS Credit Opportunities Annual Data
Trend Dec22 Dec23 Dec24
Forward Rate of Return (Yacktman) %
- - -

FS Credit Opportunities Semi-Annual Data
Dec22 Jun23 Dec23 Jun24 Dec24
Forward Rate of Return (Yacktman) % - - - - -

Competitive Comparison of FS Credit Opportunities's Forward Rate of Return (Yacktman) %

For the Asset Management subindustry, FS Credit Opportunities'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.


FS Credit Opportunities's Forward Rate of Return (Yacktman) % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, FS Credit Opportunities's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where FS Credit Opportunities's Forward Rate of Return (Yacktman) % falls into.


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FS Credit Opportunities 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).

FS Credit Opportunities's Forward Rate of Return of Dec. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=0/6.82+0
=0.00 %

* 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.


FS Credit Opportunities  (NYSE:FSCO) 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.


FS Credit Opportunities Forward Rate of Return (Yacktman) % Related Terms

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


FS Credit Opportunities Business Description

Traded in Other Exchanges
N/A
Address
201 Rouse Boulevard, Philadelphia, PA, USA, 19112
FS Credit Opportunities Corp is a closed-end management investment company. The Fund's primary investment objective is to generate an attractive total return consisting of a high level of current income and capital appreciation, with a secondary objective of capital preservation. It predominantly invests in a portfolio of secured and unsecured floating and fixed-rate loans, bonds, and other types of credit instruments. The credit instruments in which it invests typically are rated below investment grade by rating agencies or would be rated below investment grade if rated. To achieve its investment objectives, the fund focuses on strategies such as Opportunistic Credit, Special Situations, and Capital Structure Solutions.
Executives
Barbara J Fouss director C/O FS GLOBAL CREDIT OPPORTUNITIES FUND, CIRA CENTRE, 2929 ARCH STREET, SUITE 675, PHILADELPHIA PA 19104
Keith Bethel director C/O ARAMARK, 2400 MARKET STREET, PHILADELPHIA PA 19103
Della Clark director 201 ROUSE BOULEVARD, PHILADELPHIA PA 19112
Michael C. Forman director, officer: Chief Executive Officer CIRA CENTRE, 2929 ARCH STREET, SUITE 675, PHILADELPHIA PA 19104-2867
Nix Robert N.c. Iii director C/O FS INVESTMENT CORPORATION III, CIRA CENTRE, 2929 ARCH STREET, SUITE 675, PHILADELPHIA PA 19104
Hughes Philip E Jr director 3936 NETHERFIELD ROAD, PHILADELPHIA PA 19129
Fsh Seed Capital Vehicle I Llc other: Investment Adviser Affiliate 201 ROUSE BOULEVARD, PHILADELPHIA PA 19112
Franklin Square Holdings, L.p. other: Investment Adviser Affiliate 201 ROUSE BOULEVARD, PHILADELPHIA PA 19112
David J. Adelman other: Investment Adviser Affiliate CIRA CENTRE, 2929 ARCH STREET, SUITE 675, PHILADELPHIA PA 19104-2867
Guardian Life Insurance Co Of America 10 percent owner 10 HUDSON YARDS, NY NY 10001
Gallivan Edward T Jr officer: Chief Financial Officer C/O FS ENERGY AND POWER FUND, CIRA CENTRE, 2929 ARCH STREET, SUITE 675, PHILADELPHIA PA 19104
Hans Nicholas Heilbut other: Investment Committee Member C/O FS INVESTMENTS, 201 ROUSE BOULEVARD, PHILADELPHIA PA 19112
Michael John Kelly other: Investment Committee Member 201 ROUSE BOULEVARD, PHILADELPHIA PA 19112
David Weiser other: Investment Committee Member 201 ROUSE BOULEVARD, PHILADELPHIA PA 19112
Andrew Beckman other: Investment Committee Member C/O FS INVESTMENTS, 201 ROUSE BOULEVARD, PHILADELPHIA PA 19112