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Royce Micro-Cap TrustRMT +0.89%54 Forward Rate of Return (Yacktman) % is % as of Dec. 2025. GuruFocus rates RMT with a GF Score™ of 54/100 and a GF Value™ of $21.33 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,168 Asset Management companies, Royce Micro-Cap Trust ranks worse than 60.87% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Royce Micro-Cap Trust's forward rate of return for was %.
The historical rank and industry rank for Royce Micro-Cap Trust's Forward Rate of Return (Yacktman) % or its related term are showing as below:
RMT'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 1.38 Med: 8.99 Max: 27.09
Current: 1.6
During the past 9 years, Royce Micro-Cap Trust's highest Forward Rate of Return was 27.09. The lowest was 1.38. And the median was 8.99.
RMT's Forward Rate of Return (Yacktman) % is ranked worse than 60.87% of 1168
companies
in the Asset Management industry
Industry Median: 4.5
vs RMT: 1.60
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.
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.
Royce Micro-Cap Trust Forward Rate of Return (Yacktman) % Related Terms
Royce Micro-Cap Trust Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Royce Micro-Cap Trust'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.
Royce Micro-Cap Trust Forward Rate of Return (Yacktman) % Chart
RMT vs FFC, FDUS, BCSF: Forward Rate of Return (Yacktman) % Comparison
For the Asset Management subindustry, Royce Micro-Cap Trust'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.
Royce Micro-Cap Trust Forward Rate of Return (Yacktman) % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Royce Micro-Cap Trust's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Royce Micro-Cap Trust's Forward Rate of Return (Yacktman) % falls into.
Royce Micro-Cap Trust 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 % mean?
Royce Micro-Cap Trust (RMT) has a Forward Rate of Return (Yacktman) % of % as of Dec. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Royce Micro-Cap Trust and its competitors. Over the past decade, Royce Micro-Cap Trust's Forward Rate of Return (Yacktman) % has ranged from 1.38 to 27.09. According to the industry distribution chart, Royce Micro-Cap Trust ranks #711 out of 1168 companies in the Asset Management industry, placing it in the top 60.9%.
Is Royce Micro-Cap Trust's Forward Rate of Return (Yacktman) % too high?
Royce Micro-Cap Trust's current Forward Rate of Return (Yacktman) % is %. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 27.09. Based on the distribution chart, Royce Micro-Cap Trust ranks #711 out of 1168 companies in the Asset Management industry, which is below the industry midpoint. Overall, Royce Micro-Cap Trust has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Royce Micro-Cap Trust's Forward Rate of Return (Yacktman) % compare to FFC and FDUS?
According to the Asset Management industry distribution chart, Royce Micro-Cap Trust ranks #711 out of 1168 companies for Forward Rate of Return (Yacktman) %. This places Royce Micro-Cap Trust in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 4.50. Historically, Royce Micro-Cap Trust's own Forward Rate of Return (Yacktman) % has ranged from 1.38 to 27.09 over the past decade. 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 Asset Management company?
The median Forward Rate of Return (Yacktman) % among Asset Management companies is 4.50, based on 1,168 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. 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 Royce Micro-Cap Trust and its competitors. For the Asset Management industry, the median Forward Rate of Return (Yacktman) % is 4.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royce Micro-Cap Trust's current Forward Rate of Return (Yacktman) % is %. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royce Micro-Cap Trust stock overvalued right now?
Based on GuruFocus' analysis, Royce Micro-Cap Trust (RMT) is currently considered Possible Value Trap. The stock's GF Value™ is $21.33, compared to a current price of $13.53 — trading 36.6% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is %. Royce Micro-Cap Trust's overall GF Score™ is 54/100 with 5 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 Royce Micro-Cap Trust (RMT), the current Forward Rate of Return (Yacktman) % is % as of Dec. 2025. 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 Royce Micro-Cap Trust (RMT) Overvalued in 2026?
Based on GuruFocus' analysis, Royce Micro-Cap Trust stock appears to be undervalued.
The current stock price of $13.53 is trading 36.6% below its estimated GF Value™ of $21.33.
GuruFocus considers Royce Micro-Cap Trust to be Possible Value Trap.
Key valuation signals for RMT:
Forward Rate of Return (Yacktman) %: %
GF Value™: $21.33 vs. price of $13.53 (36.6% below fair value)
No single metric tells the full story. See the RMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royce Micro-Cap Trust Inc is a diversified closed-end investment company. The company is engaged in investing in micro-cap securities. It invests in the consumer discretionary sector, including diversified consumer services, hotels, household durables, leisure products, and luxury goods. Consumer staples sector, including beverages, food, and staples retailing, food products, and personal products, Energy sector, including energy equipment and services, and oil, gas, and consumable fuels. The company also invests in other sectors, including healthcare, financials, industrials, IT, telecommunications, and materials.
54GF Score
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