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Magellan Financial GroupMGLLF 52 Forward Rate of Return (Yacktman) % is 14.95% as of Jun. 2025, which is 33% below its 10-year median of 22.32. GuruFocus rates MGLLF with a GF Score™ of 52/100 and a GF Value™ of $4.09 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,171 Asset Management companies, Magellan Financial Group ranks better than 73.53% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Magellan Financial Group's forward rate of return for was 14.95%.
The historical rank and industry rank for Magellan Financial Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
MGLLF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 10.48 Med: 22.32 Max: 37.31
Current: 11.8
During the past 13 years, Magellan Financial Group's highest Forward Rate of Return was 37.31. The lowest was 10.48. And the median was 22.32.
MGLLF's Forward Rate of Return (Yacktman) % is ranked better than 73.53% of 1171
companies
in the Asset Management industry
Industry Median: 4.42
vs MGLLF: 11.80
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.
Magellan Financial Group (OTCPK:MGLLF) 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.
Magellan Financial Group Forward Rate of Return (Yacktman) % Related Terms
Magellan Financial Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Magellan Financial 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.
Magellan Financial Group Forward Rate of Return (Yacktman) % Chart
MGLLF vs BLK, BX, KKR: Forward Rate of Return (Yacktman) % Comparison
For the Asset Management subindustry, Magellan Financial 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.
Magellan Financial Group Forward Rate of Return (Yacktman) % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Magellan Financial Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Magellan Financial Group's Forward Rate of Return (Yacktman) % falls into.
Magellan Financial 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 14.95% mean?
Magellan Financial Group (MGLLF) has a Forward Rate of Return (Yacktman) % of 14.95% 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 Magellan Financial Group and its competitors. This is 33% below median its historical median of 22.32. Over the past decade, Magellan Financial Group's Forward Rate of Return (Yacktman) % has ranged from 10.48 to 37.31. According to the industry distribution chart, Magellan Financial Group ranks #310 out of 1171 companies in the Asset Management industry, placing it in the top 26.5%.
Is Magellan Financial Group's Forward Rate of Return (Yacktman) % too high?
Magellan Financial Group's current Forward Rate of Return (Yacktman) % of 14.95% is 33% below median its 10-year median of 22.32. Over the past 10 years, this metric has ranged from a low of 10.48 to a high of 37.31. The Asset Management industry median Forward Rate of Return (Yacktman) % is 4.42. Magellan Financial Group's value of 14.95% is 238.2% above this industry median. Based on the distribution chart, Magellan Financial Group ranks #310 out of 1171 companies in the Asset Management industry, which is above the industry midpoint. Overall, Magellan Financial Group has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magellan Financial Group's Forward Rate of Return (Yacktman) % compare to BLK and BX?
According to the Asset Management industry distribution chart, Magellan Financial Group ranks #310 out of 1171 companies for Forward Rate of Return (Yacktman) %. This puts Magellan Financial Group in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 4.42. Magellan Financial Group's value of 14.95% is 238.2% above this benchmark. Historically, Magellan Financial Group's own Forward Rate of Return (Yacktman) % has ranged from 10.48 to 37.31 over the past decade. While the company's 10-year median is 22.32 vs. the industry median of 4.42, Magellan Financial 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 Asset Management company?
The median Forward Rate of Return (Yacktman) % among Asset Management companies is 4.42, based on 1,171 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. Magellan Financial Group's current Forward Rate of Return (Yacktman) % of 14.95% is 238.2% 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 Magellan Financial Group and its competitors. For the Asset Management industry, the median Forward Rate of Return (Yacktman) % is 4.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magellan Financial Group's current Forward Rate of Return (Yacktman) % is 14.95%, which is 33% below median its own 10-year median of 22.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magellan Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Magellan Financial Group (MGLLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.09, compared to a current price of $6.74 — trading 64.8% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 14.95%, which is 33% below median its 10-year median of 22.32 and 238.2% above the Asset Management industry median of 4.42. Magellan Financial Group's overall GF Score™ is 52/100 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 Magellan Financial Group (MGLLF), the current Forward Rate of Return (Yacktman) % is 14.95% 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 Magellan Financial Group (MGLLF) Overvalued in 2026?
Based on GuruFocus' analysis, Magellan Financial Group stock appears to be overvalued.
The current stock price of $6.74 is trading 64.8% above its estimated GF Value™ of $4.09.
GuruFocus considers Magellan Financial Group to be Significantly Overvalued.
Key valuation signals for MGLLF:
Forward Rate of Return (Yacktman) %: 14.95% (33% below median its 10-year median of 22.32)
GF Value™: $4.09 vs. price of $6.74 (64.8% above fair value)
Industry Position: 238.2% above the Asset Management median (#310 of 1171)
No single metric tells the full story. See the MGLLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magellan Financial Group was established in 2006 as an active asset manager, before merging with Barrenjoey in 2026 to add investment banking to its offering. The heritage asset management business specializes in global, infrastructure, and Australian equities for domestic retail and institutional investors. More recently, the firm has partnered with external asset managers to distribute funds in areas outside its own investment expertise. Barrenjoey, meanwhile, operates across advisory, capital markets, research and execution, and private capital, holding market-leading positions across several business lines relative to domestic rivals.
52GF Score
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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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