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MPWR (Monolithic Power Systems) Forward Rate of Return (Yacktman) % : 20.79% (As of Sep. 2024)


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What is Monolithic Power Systems Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Monolithic Power Systems's forward rate of return for was 20.79%.

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

MPWR' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -0.6   Med: 20.86   Max: 21.62
Current: 21.21

During the past 13 years, Monolithic Power Systems's highest Forward Rate of Return was 21.62. The lowest was -0.60. And the median was 20.86.

MPWR's Forward Rate of Return (Yacktman) % is ranked better than
81.96% of 560 companies
in the Semiconductors industry
Industry Median: 9.78 vs MPWR: 21.21

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven 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.


Monolithic Power Systems Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Monolithic Power Systems'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.

Monolithic Power Systems Forward Rate of Return (Yacktman) % Chart

Monolithic Power Systems Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.10 20.70 20.64 21.00 20.86

Monolithic Power Systems Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Forward Rate of Return (Yacktman) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.10 20.86 20.91 20.81 20.79

Competitive Comparison of Monolithic Power Systems's Forward Rate of Return (Yacktman) %

For the Semiconductors subindustry, Monolithic Power Systems'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.


Monolithic Power Systems's Forward Rate of Return (Yacktman) % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Monolithic Power Systems's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Monolithic Power Systems's Forward Rate of Return (Yacktman) % falls into.



Monolithic Power Systems 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).

Monolithic Power Systems's Forward Rate of Return of Sep. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=7.33752381/924.5+0.2
=20.79 %

* 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.


Monolithic Power Systems  (NAS:MPWR) 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.


Monolithic Power Systems Forward Rate of Return (Yacktman) % Related Terms

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


Monolithic Power Systems Business Description

Traded in Other Exchanges
Address
5808 Lake Washington Boulevard NE, Kirkland, WA, USA, 98033
Monolithic Power Systems is an analog and mixed-signal chipmaker, specializing in power management solutions. The firm's mission is to reduce total energy consumption in end systems, and it serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.
Executives
Theodore Blegen officer: CFO 5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033
Saria Tseng officer: VP and General Counsel 79 GREAT OAKS BLVD, SAN JOSE CA 95119
Deming Xiao officer: Vice President of Operations 79 GREAT OAKS BLVD, SAN JOSE CA 95119
Michael Hsing director, 10 percent owner, officer: President and CEO 79 GREAT OAKS BLVD, SAN JOSE CA 95119
Maurice Sciammas officer: Sr. V.P.of Sales and Marketing 79 GREAT OAKS BLVD, SAN JOSE CA 95119
Chang Kuo Wei Herbert director, 10 percent owner C/O MARVELL SEMICONDUCTOR, INC., 5488 MARVELL LANE, SANTA CLARA CA 95054
Victor K Lee director C/O LEADIS TECHNOLOGY, 800 W. CALIFORNIA AVENUE, SUITE 200, SUNNYVALE CA 94086
Jeff Zhou director 6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
James C Moyer director, 10 percent owner, officer: Chief Design Engineer 79 GREAT OAKS BLVD, SAN JOSE CA 95119
Eileen Wynne director MONOLITHIC POWER SYSTEMS, 79 GREAT OAKS BLVD, SAN JOSE CA 95117
Eugen J Elmiger director BUEELHADE 3A, SEMPACH STADT V8 6204
Carintia Martinez director 5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033
Meera Rao officer: VP of Finance, Corp Controller 1050 ENTERPRISE WAY, SUITE 700, SUNNYVALE CA 94089
Douglas M Mcburnie director 233 S. HILLVIEW DRIVE, MILPITAS CA 95035
Smith- Pilkington Karen A director 343 STATE STREET, ROCHESTER NY 146500211