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Perdoceo EducationPRDO +0.03%91 Forward Rate of Return (Yacktman) % is 19.55% as of Mar. 2026, which is 20% below its 10-year median of 24.32. GuruFocus rates PRDO with a GF Score™ of 91/100 and a GF Value™ of $35.46 (Fairly Valued). The stock has 3 warning signs investors should review. Among 169 Education companies, Perdoceo Education ranks better than 59.17% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Perdoceo Education's forward rate of return for was 19.55%.
The historical rank and industry rank for Perdoceo Education's Forward Rate of Return (Yacktman) % or its related term are showing as below:
PRDO'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 16.62 Med: 24.32 Max: 34.5
Current: 20.47
During the past 13 years, Perdoceo Education's highest Forward Rate of Return was 34.50. The lowest was 16.62. And the median was 24.32.
PRDO's Forward Rate of Return (Yacktman) % is ranked better than 59.17% of 169
companies
in the Education industry
Industry Median: 16.09
vs PRDO: 20.47
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.
Perdoceo Education (NAS:PRDO) 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.
Perdoceo Education Forward Rate of Return (Yacktman) % Related Terms
Perdoceo Education Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Perdoceo Education'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.
Perdoceo Education Forward Rate of Return (Yacktman) % Chart
PRDO vs MH, DAO, UTI: Forward Rate of Return (Yacktman) % Comparison
For the Education & Training Services subindustry, Perdoceo Education'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.
Perdoceo Education Forward Rate of Return (Yacktman) % vs Education Industry
For the Education industry and Consumer Defensive sector, Perdoceo Education's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Perdoceo Education's Forward Rate of Return (Yacktman) % falls into.
Perdoceo Education 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 19.55% mean?
Perdoceo Education (PRDO) has a Forward Rate of Return (Yacktman) % of 19.55% as of Mar. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Perdoceo Education and its competitors. This is 20% below median its historical median of 24.32. Over the past decade, Perdoceo Education's Forward Rate of Return (Yacktman) % has ranged from 16.62 to 34.50. According to the industry distribution chart, Perdoceo Education ranks #69 out of 169 companies in the Education industry, placing it in the top 40.8%.
Is Perdoceo Education's Forward Rate of Return (Yacktman) % too high?
Perdoceo Education's current Forward Rate of Return (Yacktman) % of 19.55% is 20% below median its 10-year median of 24.32. Over the past 10 years, this metric has ranged from a low of 16.62 to a high of 34.50. The Education industry median Forward Rate of Return (Yacktman) % is 16.09. Perdoceo Education's value of 19.55% is 21.5% above this industry median. Based on the distribution chart, Perdoceo Education ranks #69 out of 169 companies in the Education industry, which is above the industry midpoint. Overall, Perdoceo Education has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Perdoceo Education's Forward Rate of Return (Yacktman) % compare to MH and DAO?
According to the Education industry distribution chart, Perdoceo Education ranks #69 out of 169 companies for Forward Rate of Return (Yacktman) %. This puts Perdoceo Education in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 16.09. Perdoceo Education's value of 19.55% is 21.5% above this benchmark. Historically, Perdoceo Education's own Forward Rate of Return (Yacktman) % has ranged from 16.62 to 34.50 over the past decade. While the company's 10-year median is 24.32 vs. the industry median of 16.09, Perdoceo Education 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 Education company?
The median Forward Rate of Return (Yacktman) % among Education companies is 16.09, based on 169 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. Perdoceo Education's current Forward Rate of Return (Yacktman) % of 19.55% is 21.5% 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 Perdoceo Education and its competitors. For the Education industry, the median Forward Rate of Return (Yacktman) % is 16.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perdoceo Education's current Forward Rate of Return (Yacktman) % is 19.55%, which is 20% below median its own 10-year median of 24.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perdoceo Education stock overvalued right now?
Based on GuruFocus' analysis, Perdoceo Education (PRDO) is currently considered Fairly Valued. The stock's GF Value™ is $35.46, compared to a current price of $32.93 — trading 7.1% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 19.55%, which is 20% below median its 10-year median of 24.32 and 21.5% above the Education industry median of 16.09. Perdoceo Education's overall GF Score™ is 91/100 with 3 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 Perdoceo Education (PRDO), the current Forward Rate of Return (Yacktman) % is 19.55% as of Mar. 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 Perdoceo Education (PRDO) Overvalued in 2026?
Based on GuruFocus' analysis, Perdoceo Education stock appears to be undervalued.
The current stock price of $32.93 is trading 7.1% below its estimated GF Value™ of $35.46.
GuruFocus considers Perdoceo Education to be Fairly Valued.
Key valuation signals for PRDO:
Forward Rate of Return (Yacktman) %: 19.55% (20% below median its 10-year median of 24.32)
GF Value™: $35.46 vs. price of $32.93 (7.1% below fair value)
Industry Position: 21.5% above the Education median (#69 of 169)
No single metric tells the full story. See the PRDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perdoceo Education Corp is an American for-profit education company that focuses on quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. The company's important segments include the American InterContinental University, the University of St. Augustine for Health Sciences, and Colorado Technical University. These universities provide undergraduate, graduate, and doctoral degree programs focusing on business, technology, management, and social services, with the majority of the students enrolled in programs offered fully online. The majority of the its revenue comes from the Colorado Technical University segment.
91GF Score
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