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Progress SoftwarePRGS -2.32%79 Forward Rate of Return (Yacktman) % is 28.69% as of May. 2026, which is 17% above its 10-year median of 24.58. GuruFocus rates PRGS with a GF Score™ of 79/100 and a GF Value™ of $78.84 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,371 Software companies, Progress Software ranks better than 88.99% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Progress Software's forward rate of return for was 28.69%.
The historical rank and industry rank for Progress Software's Forward Rate of Return (Yacktman) % or its related term are showing as below:
PRGS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -30.42 Med: 24.58 Max: 31.46
Current: 25.1
During the past 13 years, Progress Software's highest Forward Rate of Return was 31.46. The lowest was -30.42. And the median was 24.58.
PRGS's Forward Rate of Return (Yacktman) % is ranked better than 88.99% of 1371
companies
in the Software industry
Industry Median: 13.11
vs PRGS: 25.10
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.
Progress Software (NAS:PRGS) 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.
Progress Software Forward Rate of Return (Yacktman) % Related Terms
Progress Software Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Progress Software'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.
Progress Software Forward Rate of Return (Yacktman) % Chart
PRGS vs PICS, NN, APPN: Forward Rate of Return (Yacktman) % Comparison
For the Software - Infrastructure subindustry, Progress Software'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.
Progress Software Forward Rate of Return (Yacktman) % vs Software Industry
For the Software industry and Technology sector, Progress Software's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Progress Software's Forward Rate of Return (Yacktman) % falls into.
Progress Software 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 28.69% mean?
Progress Software (PRGS) has a Forward Rate of Return (Yacktman) % of 28.69% as of May. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Progress Software and its competitors. This is 17% above median its historical median of 24.58. According to the industry distribution chart, Progress Software ranks #151 out of 1371 companies in the Software industry, placing it in the top 11%.
Is Progress Software's Forward Rate of Return (Yacktman) % too high?
Progress Software's current Forward Rate of Return (Yacktman) % of 28.69% is 17% above median its 10-year median of 24.58. The Software industry median Forward Rate of Return (Yacktman) % is 13.11. Progress Software's value of 28.69% is 118.8% above this industry median. Based on the distribution chart, Progress Software ranks #151 out of 1371 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Progress Software has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Progress Software's Forward Rate of Return (Yacktman) % compare to PICS and NN?
According to the Software industry distribution chart, Progress Software ranks #151 out of 1371 companies for Forward Rate of Return (Yacktman) %. This places Progress Software in the top 11% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 13.11. Progress Software's value of 28.69% is 118.8% above this benchmark. While the company's 10-year median is 24.58 vs. the industry median of 13.11, Progress Software 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 13.11, based on 1,371 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. Progress Software's current Forward Rate of Return (Yacktman) % of 28.69% is 118.8% 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 Progress Software and its competitors. For the Software industry, the median Forward Rate of Return (Yacktman) % is 13.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current Forward Rate of Return (Yacktman) % is 28.69%, which is 17% above median its own 10-year median of 24.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Progress Software stock overvalued right now?
Based on GuruFocus' analysis, Progress Software (PRGS) is currently considered Possible Value Trap. The stock's GF Value™ is $78.84, compared to a current price of $42.77 — trading 45.8% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 28.69%, which is 17% above median its 10-year median of 24.58 and 118.8% above the Software industry median of 13.11. Progress Software's overall GF Score™ is 79/100 with 7 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 Progress Software (PRGS), the current Forward Rate of Return (Yacktman) % is 28.69% as of May. 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 Progress Software (PRGS) Overvalued in 2026?
Based on GuruFocus' analysis, Progress Software stock appears to be undervalued.
The current stock price of $42.77 is trading 45.8% below its estimated GF Value™ of $78.84.
GuruFocus considers Progress Software to be Possible Value Trap.
Key valuation signals for PRGS:
Forward Rate of Return (Yacktman) %: 28.69% (17% above median its 10-year median of 24.58)
GF Value™: $78.84 vs. price of $42.77 (45.8% below fair value)
Industry Position: 118.8% above the Software median (#151 of 1371)
No single metric tells the full story. See the PRGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Progress Software Corp provides software products that enable customers to develop, deploy, and manage AI-powered applications and digital experiences. The Company operates across North America, Latin America, Europe, the Middle East and Africa (EMEA), and Asia Pacific through subsidiaries and distributors, generating a majority of its revenue from the United States. Its product portfolio includes Progress Agentic RAG, Automate MFT, Chef, Corticon, DataDirect, Developer Tools, Flowmon, Kemp LoadMaster, MarkLogic, MOVEit, OpenEdge, Semaphore, ShareFile, Sitefinity, and WhatsUp Gold, offering solutions for application development, data connectivity, DevOps automation, managed file transfer, network security, and digital experience. It generates maximum revenue from the United States.
79GF Score
Get the complete analysis for PRGS
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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