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Aegon (WBO:AEGN) Forward Rate of Return (Yacktman) % : 0.00% (As of Dec. 2023)


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

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Aegon's forward rate of return for was 0.00%.

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

WBO:AEGN' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -18.59   Med: -10.95   Max: 68.37
Current: -17.47

During the past 13 years, Aegon's highest Forward Rate of Return was 68.37. The lowest was -18.59. And the median was -10.95.

WBO:AEGN's Forward Rate of Return (Yacktman) % is ranked worse than
95.45% of 264 companies
in the Insurance industry
Industry Median: 16.59 vs WBO:AEGN: -17.47

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.


Aegon Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Aegon'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.

Aegon Forward Rate of Return (Yacktman) % Chart

Aegon Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.87 -6.53 -11.65 -15.75 -

Aegon Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 - -15.75 - - -

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

For the Insurance - Diversified subindustry, Aegon'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.


Aegon's Forward Rate of Return (Yacktman) % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Aegon's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Aegon 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).

Aegon's Forward Rate of Return of Dec. 2023 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0.36583333/5.254+-0.2347
=-16.51 %

* 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.


Aegon  (WBO:AEGN) 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.


Aegon Forward Rate of Return (Yacktman) % Related Terms

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Aegon Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Aegon Ltd (WBO:AEGN) » Definitions » Forward Rate of Return (Yacktman) %
Address
Aegonplein 50, P.O. Box 85, The Hague, ZH, NLD, 2591 TV
Aegon is a life insurance and long-term savings company listed in the Netherlands. It listed on the Amsterdam Stock Exchange in the 1980s and now has mature operations in the United States, United Kingdom, and four growth markets of Brazil, China, Portugal, and Spain. Over recent years, Aegon has been moving through an extensive transformation program where management has sought to divest noncore operations and improve the risk profile of the business. Financial assets are the parts of the business that are now being run off. Aegon is looking to cycle out of capital-consumptive and volatile-earnings products and recycle funds into capital-light and more predictable strategic businesses.