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Simulations PlusSLP -0.11%82 Forward Rate of Return (Yacktman) % is 2.01% as of May. 2026, which is 81% below its 10-year median of 10.43. GuruFocus rates SLP with a GF Score™ of 82/100 and a GF Value™ of $35.64 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 341 Healthcare Providers & Services companies, Simulations Plus ranks worse than 71.26% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Simulations Plus's forward rate of return for was 2.01%.
The historical rank and industry rank for Simulations Plus's Forward Rate of Return (Yacktman) % or its related term are showing as below:
SLP'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -4.76 Med: 10.43 Max: 21.62
Current: 1.7
During the past 13 years, Simulations Plus's highest Forward Rate of Return was 21.62. The lowest was -4.76. And the median was 10.43.
SLP's Forward Rate of Return (Yacktman) % is ranked worse than 71.26% of 341
companies
in the Healthcare Providers & Services industry
Industry Median: 12.07
vs SLP: 1.70
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.
Simulations Plus (NAS:SLP) 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.
Simulations Plus Forward Rate of Return (Yacktman) % Related Terms
Simulations Plus Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Simulations Plus'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.
Simulations Plus Forward Rate of Return (Yacktman) % Chart
SLP vs CTEV, TBRG, CARL: Forward Rate of Return (Yacktman) % Comparison
For the Health Information Services subindustry, Simulations Plus'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.
Simulations Plus Forward Rate of Return (Yacktman) % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Simulations Plus's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Simulations Plus's Forward Rate of Return (Yacktman) % falls into.
Simulations Plus 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 2.01% mean?
Simulations Plus (SLP) has a Forward Rate of Return (Yacktman) % of 2.01% 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 Simulations Plus and its competitors. This is 81% below median its historical median of 10.43. According to the industry distribution chart, Simulations Plus ranks #243 out of 341 companies in the Healthcare Providers & Services industry, placing it in the top 71.3%.
Is Simulations Plus' Forward Rate of Return (Yacktman) % too high?
Simulations Plus' current Forward Rate of Return (Yacktman) % of 2.01% is 81% below median its 10-year median of 10.43. The Healthcare Providers & Services industry median Forward Rate of Return (Yacktman) % is 12.07. Simulations Plus' value of 2.01% is 83.3% below this industry median. Based on the distribution chart, Simulations Plus ranks #243 out of 341 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Simulations Plus has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Simulations Plus' Forward Rate of Return (Yacktman) % compare to CTEV and TBRG?
According to the Healthcare Providers & Services industry distribution chart, Simulations Plus ranks #243 out of 341 companies for Forward Rate of Return (Yacktman) %. This places Simulations Plus in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 12.07. Simulations Plus' value of 2.01% is 83.3% below this benchmark. While the company's 10-year median is 10.43 vs. the industry median of 12.07, Simulations Plus has consistently been below 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 Healthcare Providers & Services company?
The median Forward Rate of Return (Yacktman) % among Healthcare Providers & Services companies is 12.07, based on 341 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. Simulations Plus's current Forward Rate of Return (Yacktman) % of 2.01% is 83.3% below 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 Simulations Plus and its competitors. For the Healthcare Providers & Services industry, the median Forward Rate of Return (Yacktman) % is 12.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simulations Plus's current Forward Rate of Return (Yacktman) % is 2.01%, which is 81% below median its own 10-year median of 10.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simulations Plus stock overvalued right now?
Based on GuruFocus' analysis, Simulations Plus (SLP) is currently considered Significantly Undervalued. The stock's GF Value™ is $35.64, compared to a current price of $18.32 — trading 48.6% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 2.01%, which is 81% below median its 10-year median of 10.43 and 83.3% below the Healthcare Providers & Services industry median of 12.07. Simulations Plus' overall GF Score™ is 82/100 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 Simulations Plus (SLP), the current Forward Rate of Return (Yacktman) % is 2.01% 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 Simulations Plus (SLP) Overvalued in 2026?
Based on GuruFocus' analysis, Simulations Plus stock appears to be undervalued.
The current stock price of $18.32 is trading 48.6% below its estimated GF Value™ of $35.64.
GuruFocus considers Simulations Plus to be Significantly Undervalued.
Key valuation signals for SLP:
Forward Rate of Return (Yacktman) %: 2.01% (81% below median its 10-year median of 10.43)
GF Value™: $35.64 vs. price of $18.32 (48.6% below fair value)
Industry Position: 83.3% below the Healthcare Providers & Services median (#243 of 341)
No single metric tells the full story. See the SLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simulations Plus Inc is engaged in the software industry. It develops and produces software for use in pharmaceutical research and education, and provides consulting and contract research services to the pharmaceutical industry. The company's operating segments include Software and services. The company offers software products for pharmaceutical research such as ADMET (Absorption, Distribution, Metabolism, Excretion, and Toxicity). It generates maximum revenue from the software segment. Maximum revenue is earned from USA following EMEA and Asia Pacific.
82GF Score
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