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OUTsurance GroupJSE:OUT +0.67%74 Forward Rate of Return (Yacktman) % is 22.59% as of Jun. 2025, which is 66% above its 10-year median of 13.58. GuruFocus rates JSE:OUT with a GF Score™ of 74/100 and a GF Value™ of R47.52 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 281 Insurance companies, OUTsurance Group ranks better than 64.41% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. OUTsurance Group's forward rate of return for was 22.59%.
The historical rank and industry rank for OUTsurance Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
JSE:OUT'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -8.49 Med: 13.58 Max: 24.22
Current: 22.48
During the past 13 years, OUTsurance Group's highest Forward Rate of Return was 24.22. The lowest was -8.49. And the median was 13.58.
JSE:OUT's Forward Rate of Return (Yacktman) % is ranked better than 64.41% of 281
companies
in the Insurance industry
Industry Median: 16.75
vs JSE:OUT: 22.48
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.
OUTsurance Group (JSE:OUT) 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.
OUTsurance Group Forward Rate of Return (Yacktman) % Related Terms
OUTsurance Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for OUTsurance Group'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.
OUTsurance Group Forward Rate of Return (Yacktman) % Chart
JSE:OUT vs BRK.A, AIG, HIG: Forward Rate of Return (Yacktman) % Comparison
For the Insurance - Diversified subindustry, OUTsurance Group'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.
OUTsurance Group Forward Rate of Return (Yacktman) % vs Insurance Industry
For the Insurance industry and Financial Services sector, OUTsurance Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where OUTsurance Group's Forward Rate of Return (Yacktman) % falls into.
OUTsurance Group 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 22.59% mean?
OUTsurance Group (JSE:OUT) has a Forward Rate of Return (Yacktman) % of 22.59% 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 OUTsurance Group and its competitors. This is 66% above median its historical median of 13.58. According to the industry distribution chart, OUTsurance Group ranks #100 out of 281 companies in the Insurance industry, placing it in the top 35.6%.
Is OUTsurance Group's Forward Rate of Return (Yacktman) % too high?
OUTsurance Group's current Forward Rate of Return (Yacktman) % of 22.59% is 66% above median its 10-year median of 13.58. The Insurance industry median Forward Rate of Return (Yacktman) % is 16.75. OUTsurance Group's value of 22.59% is 34.9% above this industry median. Based on the distribution chart, OUTsurance Group ranks #100 out of 281 companies in the Insurance industry, which is above the industry midpoint. Overall, OUTsurance Group has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does OUTsurance Group's Forward Rate of Return (Yacktman) % compare to BRK.A and AIG?
According to the Insurance industry distribution chart, OUTsurance Group ranks #100 out of 281 companies for Forward Rate of Return (Yacktman) %. This puts OUTsurance Group in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 16.75. OUTsurance Group's value of 22.59% is 34.9% above this benchmark. While the company's 10-year median is 13.58 vs. the industry median of 16.75, OUTsurance Group 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 Insurance company?
The median Forward Rate of Return (Yacktman) % among Insurance companies is 16.75, based on 281 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. OUTsurance Group's current Forward Rate of Return (Yacktman) % of 22.59% is 34.9% 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 OUTsurance Group and its competitors. For the Insurance industry, the median Forward Rate of Return (Yacktman) % is 16.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OUTsurance Group's current Forward Rate of Return (Yacktman) % is 22.59%, which is 66% above median its own 10-year median of 13.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OUTsurance Group stock overvalued right now?
Based on GuruFocus' analysis, OUTsurance Group (JSE:OUT) is currently considered Significantly Overvalued. The stock's GF Value™ is R47.52, compared to a current price of R82.48 — trading 73.6% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 22.59%, which is 66% above median its 10-year median of 13.58 and 34.9% above the Insurance industry median of 16.75. OUTsurance Group's overall GF Score™ is 74/100 with 3 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 OUTsurance Group (JSE:OUT), the current Forward Rate of Return (Yacktman) % is 22.59% 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 OUTsurance Group (JSE:OUT) Overvalued in 2026?
Based on GuruFocus' analysis, OUTsurance Group stock appears to be overvalued.
The current stock price of R82.48 is trading 73.6% above its estimated GF Value™ of R47.52.
GuruFocus considers OUTsurance Group to be Significantly Overvalued.
Key valuation signals for JSE:OUT:
Forward Rate of Return (Yacktman) %: 22.59% (66% above median its 10-year median of 13.58)
GF Value™: R47.52 vs. price of R82.48 (73.6% above fair value)
Industry Position: 34.9% above the Insurance median (#100 of 281)
No single metric tells the full story. See the JSE:OUT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
OUTsurance Group Ltd is an insurance group that specialises in Property and Casualty insurance. Its main segments include personal insurance, business insurance, compulsory third-party vehicle insurance, life insurance, and administration services. The company provides motor, home, business, life, funeral, and pet insurance products through its subsidiaries. The company's primary source of revenue is insurance premiums. The group's activities are focused on the South African, Australian and Irish markets.
74GF Score
Get the complete analysis for JSE:OUT
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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