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PagSeguro DigitalPAGS -1.13%90 Forward Rate of Return (Yacktman) % is 25.34% as of Jun. 2026, which is 28% above its 10-year median of 19.79. GuruFocus rates PAGS with a GF Score™ of 90/100 and a GF Value™ of $11.72 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,367 Software companies, PagSeguro Digital ranks better than 89.9% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. PagSeguro Digital's forward rate of return for was 25.34%.
The historical rank and industry rank for PagSeguro Digital's Forward Rate of Return (Yacktman) % or its related term are showing as below:
PAGS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 18.55 Med: 19.79 Max: 25.47
Current: 25.47
During the past 12 years, PagSeguro Digital's highest Forward Rate of Return was 25.47. The lowest was 18.55. And the median was 19.79.
PAGS's Forward Rate of Return (Yacktman) % is ranked better than 89.9% of 1367
companies
in the Software industry
Industry Median: 13.15
vs PAGS: 25.47
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.
PagSeguro Digital (NYSE:PAGS) 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.
PagSeguro Digital Forward Rate of Return (Yacktman) % Related Terms
PagSeguro Digital Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for PagSeguro Digital'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.
PagSeguro Digital Forward Rate of Return (Yacktman) % Chart
PAGS vs AVPT, STNE, ATEN: Forward Rate of Return (Yacktman) % Comparison
For the Software - Infrastructure subindustry, PagSeguro Digital'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.
PagSeguro Digital Forward Rate of Return (Yacktman) % vs Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where PagSeguro Digital's Forward Rate of Return (Yacktman) % falls into.
PagSeguro Digital 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 25.34% mean?
PagSeguro Digital (PAGS) has a Forward Rate of Return (Yacktman) % of 25.34% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on PagSeguro Digital and its competitors. This is 28% above median its historical median of 19.79. Over the past decade, PagSeguro Digital's Forward Rate of Return (Yacktman) % has ranged from 18.55 to 25.47. According to the industry distribution chart, PagSeguro Digital ranks #138 out of 1367 companies in the Software industry, placing it in the top 10.1%.
Is PagSeguro Digital's Forward Rate of Return (Yacktman) % too high?
PagSeguro Digital's current Forward Rate of Return (Yacktman) % of 25.34% is 28% above median its 10-year median of 19.79. Over the past 10 years, this metric has ranged from a low of 18.55 to a high of 25.47. The Software industry median Forward Rate of Return (Yacktman) % is 13.15. PagSeguro Digital's value of 25.34% is 92.7% above this industry median. Based on the distribution chart, PagSeguro Digital ranks #138 out of 1367 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, PagSeguro Digital has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PagSeguro Digital's Forward Rate of Return (Yacktman) % compare to AVPT and STNE?
According to the Software industry distribution chart, PagSeguro Digital ranks #138 out of 1367 companies for Forward Rate of Return (Yacktman) %. This places PagSeguro Digital in the top 10% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 13.15. PagSeguro Digital's value of 25.34% is 92.7% above this benchmark. Historically, PagSeguro Digital's own Forward Rate of Return (Yacktman) % has ranged from 18.55 to 25.47 over the past decade. While the company's 10-year median is 19.79 vs. the industry median of 13.15, PagSeguro Digital 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 a Software company?
The median Forward Rate of Return (Yacktman) % among Software companies is 13.15, based on 1,367 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. PagSeguro Digital's current Forward Rate of Return (Yacktman) % of 25.34% is 92.7% 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 PagSeguro Digital and its competitors. For the Software industry, the median Forward Rate of Return (Yacktman) % is 13.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PagSeguro Digital's current Forward Rate of Return (Yacktman) % is 25.34%, which is 28% above median its own 10-year median of 19.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PagSeguro Digital stock overvalued right now?
Based on GuruFocus' analysis, PagSeguro Digital (PAGS) is currently considered Modestly Undervalued. The stock's GF Value™ is $11.72, compared to a current price of $8.72 — trading 25.6% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 25.34%, which is 28% above median its 10-year median of 19.79 and 92.7% above the Software industry median of 13.15. PagSeguro Digital's overall GF Score™ is 90/100 with 4 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 PagSeguro Digital (PAGS), the current Forward Rate of Return (Yacktman) % is 25.34% as of Jun. 2026. 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 PagSeguro Digital (PAGS) Overvalued in 2026?
Based on GuruFocus' analysis, PagSeguro Digital stock appears to be undervalued.
The current stock price of $8.72 is trading 25.6% below its estimated GF Value™ of $11.72.
GuruFocus considers PagSeguro Digital to be Modestly Undervalued.
Key valuation signals for PAGS:
Forward Rate of Return (Yacktman) %: 25.34% (28% above median its 10-year median of 19.79)
GF Value™: $11.72 vs. price of $8.72 (25.6% below fair value)
Industry Position: 92.7% above the Software median (#138 of 1367)
No single metric tells the full story. See the PAGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.
90GF Score
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