LTRE (Learning Tree International) Forward Rate of Return (Yacktman) %: % (As of Sep. 2018)

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What is Learning Tree International Forward Rate of Return (Yacktman) %?

Learning Tree International LTRE Forward Rate of Return (Yacktman) % is % as of Sep. 2018.

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Learning Tree International's forward rate of return for was %.

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

LTRE's Forward Rate of Return (Yacktman) % is not ranked *
in the Education industry.
Industry Median: 15.67
* 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.


Learning Tree International  (OTCPK:LTRE) 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.


Learning Tree International Forward Rate of Return (Yacktman) % Related Terms


Learning Tree International Forward Rate of Return (Yacktman) % Historical Data

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The historical data trend for Learning Tree International'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.

Learning Tree International Forward Rate of Return (Yacktman) % Chart

Learning Tree International Annual Data
Trend Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
Forward Rate of Return (Yacktman) %
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Learning Tree International Quarterly Data
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LTRE vs WAFU: Forward Rate of Return (Yacktman) % Comparison

For the Education & Training Services subindustry, Learning Tree International'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.


Learning Tree International Forward Rate of Return (Yacktman) % vs Education Industry

For the Education industry and Consumer Defensive sector, Learning Tree International's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Learning Tree International's Forward Rate of Return (Yacktman) % falls into.



Learning Tree International 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).

Learning Tree International's Forward Rate of Return of Sep. 2018 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0.31333333/1.2+-0.2162
=4.49 %

* 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 % mean?
Learning Tree International (LTRE) has a Forward Rate of Return (Yacktman) % of % as of Sep. 2018. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Learning Tree International and its competitors.
Is Learning Tree International's Forward Rate of Return (Yacktman) % too high?
Learning Tree International's current Forward Rate of Return (Yacktman) % is %.
How does Learning Tree International's Forward Rate of Return (Yacktman) % compare to WAFU?
Learning Tree International's Forward Rate of Return (Yacktman) % of % can be compared against companies in the Education industry. The industry median Forward Rate of Return (Yacktman) % is 15.67. 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 Education company?
The median Forward Rate of Return (Yacktman) % among Education companies is 15.67, based on 168 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 Learning Tree International and its competitors. For the Education industry, the median Forward Rate of Return (Yacktman) % is 15.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Learning Tree International's current Forward Rate of Return (Yacktman) % is %. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Learning Tree International stock overvalued right now?
Learning Tree International (LTRE) has a current Forward Rate of Return (Yacktman) % of %. The current Forward Rate of Return (Yacktman) % is %. 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 Learning Tree International (LTRE), the current Forward Rate of Return (Yacktman) % is % as of Sep. 2018. 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.

Learning Tree International Business Description

Address 13650 Dulles Technology Drive, Suite 400, Herndon, VA, USA, 20171
Learning Tree International Inc provides education and training in information technology. Its proprietary library of course titles focuses on client-server systems, computer networks, operating systems, databases, programming, graphical user interfaces, object-oriented technology, and IT management. Its courses are offered in hotels, conference facilities, and customer sites.