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Qualcomm (Qualcomm) Forward Rate of Return (Yacktman) % : 22.69% (As of Mar. 2024)


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What is Qualcomm Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Qualcomm's forward rate of return for was 22.69%.

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

QCOM' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -14.69   Med: 16.45   Max: 25.53
Current: 22.02

During the past 13 years, Qualcomm's highest Forward Rate of Return was 25.53. The lowest was -14.69. And the median was 16.45.

QCOM's Forward Rate of Return (Yacktman) % is ranked better than
86.85% of 540 companies
in the Semiconductors industry
Industry Median: 12.715 vs QCOM: 22.02

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.


Qualcomm Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Qualcomm'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.

Qualcomm Forward Rate of Return (Yacktman) % Chart

Qualcomm Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.09 7.54 23.40 24.41 25.30

Qualcomm Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 24.02 24.61 25.30 24.45 22.69

Competitive Comparison of Qualcomm's Forward Rate of Return (Yacktman) %

For the Semiconductors subindustry, Qualcomm'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.


Qualcomm's Forward Rate of Return (Yacktman) % Distribution in the Semiconductors Industry

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

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



Qualcomm 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).

Qualcomm's Forward Rate of Return of Mar. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=6.96685714/169.3+0.1857
=22.69 %

* 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.


Qualcomm  (NAS:QCOM) 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.


Qualcomm Forward Rate of Return (Yacktman) % Related Terms

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


Qualcomm (Qualcomm) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Qualcomm Inc (NAS:QCOM) » Definitions » Forward Rate of Return (Yacktman) %
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.
Executives
Cristiano R Amon officer: President 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James J Cathey officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Alexander H Rogers officer: EVP & President, QTL 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Neil Martin officer: SVP, Finance and CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James H Thompson officer: EVP, Qualcomm Technologies Inc 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Jeffrey William Henderson director 7000 CARDINAL PLACE, DUBLIN OH 43017
Erin L Polek officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Akash J. Palkhiwala officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Ann C Chaplin officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Donald J Rosenberg officer: EVP, GC & Corporate Secretary QUALCOMM INCORPORATED, 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Brian Modoff officer: EVP, Strategy and M&A 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Gregory N Johnson director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Sylvia Acevedo director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Randt Clark T. Jr. director ONE VALMONT PLAZA, 13815 FIRST NATIONAL BANK PARKWAY, OMAHA NE 68154
Jean-pascal Tricoire director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121

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