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Shareate Tools (SHSE:688257) Forward Rate of Return (Yacktman) % : 11.19% (As of Mar. 2025)


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What is Shareate Tools Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Shareate Tools's forward rate of return for was 11.19%.

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

SHSE:688257' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 11.11   Med: 14.75   Max: 20
Current: 11.11

During the past 12 years, Shareate Tools's highest Forward Rate of Return was 20.00. The lowest was 11.11. And the median was 14.75.

SHSE:688257's Forward Rate of Return (Yacktman) % is ranked better than
52.96% of 1962 companies
in the Industrial Products industry
Industry Median: 9.665 vs SHSE:688257: 11.11

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.


Shareate Tools Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Shareate Tools'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.

Shareate Tools Forward Rate of Return (Yacktman) % Chart

Shareate Tools Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Forward Rate of Return (Yacktman) %
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Shareate Tools Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 - - - - 11.19

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

For the Tools & Accessories subindustry, Shareate Tools'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.


Shareate Tools's Forward Rate of Return (Yacktman) % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shareate Tools's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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


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Shareate Tools 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).

Shareate Tools's Forward Rate of Return of Mar. 2025 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=-0.132/15.064285+0.1207
=11.19 %

* 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.


Shareate Tools  (SHSE:688257) 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.


Shareate Tools Forward Rate of Return (Yacktman) % Related Terms

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


Shareate Tools Business Description

Traded in Other Exchanges
N/A
Address
133 Shuangma Street, Weiting Town, Suzhou Industrial Park, Jiangsu Province, Suzhou, CHN, 215121
Shareate Tools Ltd is a national high-tech enterprise, engaged in cemented carbide products and rock drilling tools. Its main products are Rotary Tricone Bit, DTH Hammer & Bit for mining, water well, and oil-field drilling applications, oil drilling, and mining cemented carbide, carbide substrates for PDC bits, petroleum drill bit nozzle, ultra-fine cemented carbide rod, fine grain cutting tools, stamping die plate, cold heading dies, powder metallurgy dies, tungsten carbide tubular welding, wear parts, non-standard parts. It exports to South America, Africa, Australia, Russia, South Korea, the USA, Canada and other countries.
Executives
Yu Li Xin Core technical personnel
Yang Han Min Core technical personnel
Li Ning Core technical personnel
senior management
Lu Qing Zhong Core technical personnel
Liu Yong senior management
Zhang Yong Qiang Supervisors
Rao Xiang senior management
Wu He Hong Directors, senior managers
Xue You Gang Supervisors
Yuan Ai Directors, senior managers
Liu Guo Zhu Directors, senior managers

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