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Shearwater GroupLSE:SWG -0.81%41 Forward Rate of Return (Yacktman) % is 0.00% as of Mar. 2023. GuruFocus rates LSE:SWG with a GF Score™ of 41/100. The stock has 6 warning signs investors should review. Among 1,374 Software companies, Shearwater Group ranks worse than 72780.13% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Shearwater Group's forward rate of return for was 0.00%.
The historical rank and industry rank for Shearwater Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
During the past 13 years, Shearwater Group's highest Forward Rate of Return was 7.68. The lowest was -8.30. And the median was -0.31.
LSE:SWG's Forward Rate of Return (Yacktman) % is not ranked *
in the Software industry.
Industry Median: 13.285 * 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.
Shearwater Group (LSE:SWG) 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.
Shearwater Group Forward Rate of Return (Yacktman) % Related Terms
Shearwater Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Shearwater 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.
Shearwater Group Forward Rate of Return (Yacktman) % Chart
LSE:SWG vs MSFT, ORCL, PLTR: Forward Rate of Return (Yacktman) % Comparison
For the Software - Infrastructure subindustry, Shearwater 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.
Shearwater Group Forward Rate of Return (Yacktman) % vs Software Industry
For the Software industry and Technology sector, Shearwater Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Shearwater Group's Forward Rate of Return (Yacktman) % falls into.
Shearwater 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 0.00% mean?
Shearwater Group (LSE:SWG) has a Forward Rate of Return (Yacktman) % of 0.00% as of Mar. 2023. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Shearwater Group and its competitors. According to the industry distribution chart, Shearwater Group ranks #999999 out of 1374 companies in the Software industry.
Is Shearwater Group's Forward Rate of Return (Yacktman) % too high?
Shearwater Group's current Forward Rate of Return (Yacktman) % is 0.00%. Based on the distribution chart, Shearwater Group ranks #999999 out of 1374 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Shearwater Group has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does Shearwater Group's Forward Rate of Return (Yacktman) % compare to MSFT and ORCL?
According to the Software industry distribution chart, Shearwater Group ranks #999999 out of 1374 companies for Forward Rate of Return (Yacktman) %. This places Shearwater Group in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 13.29. 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 a Software company?
The median Forward Rate of Return (Yacktman) % among Software companies is 13.29, based on 1,374 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. 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 Shearwater Group and its competitors. For the Software industry, the median Forward Rate of Return (Yacktman) % is 13.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shearwater Group's current Forward Rate of Return (Yacktman) % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shearwater Group stock overvalued right now?
Shearwater Group (LSE:SWG) has a current Forward Rate of Return (Yacktman) % of 0.00%. The current Forward Rate of Return (Yacktman) % is 0.00%. Shearwater Group's overall GF Score™ is 41/100 with 6 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 Shearwater Group (LSE:SWG), the current Forward Rate of Return (Yacktman) % is 0.00% as of Mar. 2023. 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.
Shearwater Group PLC is a UK-based company focused on providing digital resilience solutions. The company delivers cybersecurity, network monitoring technologies, managed security services, Data Loss Prevention, Identity & Access Security, IT Solutions, Penetration Testing & Red Teaming, and other services. Its operating segment includes software and services. The company generates maximum revenue from the Services segment. Its geographical segments include the United Kingdom(UK) and Europe(excluding the UK), North America, and the Rest of the world, of which the majority of the revenue is derived from the UK.
41GF Score
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