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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Teledyne Technologies's forward rate of return for was 21.02%.
The historical rank and industry rank for Teledyne Technologies's Forward Rate of Return (Yacktman) % or its related term are showing as below:
During the past 13 years, Teledyne Technologies's highest Forward Rate of Return was 21.47. The lowest was 7.28. And the median was 15.11.
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.
The historical data trend for Teledyne Technologies'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.
Teledyne Technologies Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Forward Rate of Return (Yacktman) % | Get a 7-Day Free Trial | 12.79 | 15.35 | 17.02 | 19.36 | 20.94 |
Teledyne Technologies 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 | 19.51 | 20.51 | 21.14 | 20.94 | 21.02 |
For the Scientific & Technical Instruments subindustry, Teledyne Technologies'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.
For the Hardware industry and Technology sector, Teledyne Technologies's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Teledyne Technologies's Forward Rate of Return (Yacktman) % falls into.
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).
Teledyne Technologies's Forward Rate of Return of Mar. 2024 is
Forward Rate of Return | = | Normalized Free Cash Flow | / | Price | + | 5-Year EBITDA Growth Rate |
= | 13.3407619 | / | 429.32 | + | 0.1791 | |
= | 21.02 % |
* 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.
Teledyne Technologies (NYSE:TDY) 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.
Thank you for viewing the detailed overview of Teledyne Technologies's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sue Main | officer: VP & Controller | TELEDYNE TECHNOLOGIES INCORPORATED, 1049 CAMINO DOS RIOS, THOUSAND OAKS CA 91360 |
Jason Vanwees | officer: VP, Strategy, Mergers & Acq. | 1049 CAMINO DOS RIOS, THOUSAND OAKS CA 91360 |
Robert Mehrabian | officer: Chairman, Pres. & CEO | C/O TELEDYNE TECHNOLOGIES INCORPORATED, 1049 CAMINO DOS RIOS, THOUSAND OAKS CA 91360 |
Von Schack Wesley W | director | ENERGY EAST CORP, PO BOX 3287, ITHACA NY 14852-3287 |
Michael T Smith | director | 190 NW SPANISH RIVER BOULEVARD, SUITE 101, BOCA RATON FL 33431 |
Jane Cecile Sherburne | director | ONE WALL STREET, NEW YORK NY 10286 |
Melanie Susan Cibik | officer: Sr. VP, General Counsel & Sec. | 1049 CAMINO DOS RIOS, THOUSAND OAKS CA 91360 |
Stephen Finis Blackwood | officer: Senior VP & Treasurer | 1049 CAMINO DOS RIOS, THOUSAND OAKS CA 91360 |
Bobb George C Iii | officer: See Remarks | 1039 CAMINO DOS RIOS, THOUSAND OAKS CA 91360 |
Charles Crocker | director | ONE POST ST, STE 2500, SAN FRANCISCO CA 94104 |
Kenneth C Dahlberg | director | SCIENCE APPLICATIONS INTERNATIONAL CORP., 10260 CAMPUS POINT DRIVE, SAN DIEGO CA 92121 |
Cynthia Y Belak | officer: Vice President and Controller | 1049 CAMINO DOS RIOS, THOUSAND OAKS CA 91360 |
Simon M Lorne | director | 666 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10103 |
Vincent J Morales | director | PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272 |
Aldo Pichelli | officer: Segment President & COO | TELEDYNE TECHNOLOGIES INCORPORATED, 1049 CAMINO DOS RIOS, THOUSAND OAKS CA 91360 |
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