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BHC (Bausch Health) Forward Rate of Return (Yacktman) % : 26.39% (As of Jun. 2024)


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What is Bausch Health Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Bausch Health's forward rate of return for was 26.39%.

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

BHC' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -4.67   Med: 24.33   Max: 101.66
Current: 22.63

During the past 13 years, Bausch Health's highest Forward Rate of Return was 101.66. The lowest was -4.67. And the median was 24.33.

BHC's Forward Rate of Return (Yacktman) % is ranked better than
91.19% of 613 companies
in the Drug Manufacturers industry
Industry Median: 8.24 vs BHC: 22.63

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.


Bausch Health Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Bausch Health'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.

Bausch Health Forward Rate of Return (Yacktman) % Chart

Bausch Health 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 -8.46 7.18 17.42 54.19 32.90

Bausch Health Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 43.37 42.78 32.90 17.24 26.39

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

For the Drug Manufacturers - Specialty & Generic subindustry, Bausch Health'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.


Bausch Health's Forward Rate of Return (Yacktman) % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Bausch Health's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Bausch Health 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).

Bausch Health's Forward Rate of Return of Jun. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=1.70590476/6.97+0.0313
=27.60 %

* 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.


Bausch Health  (NYSE:BHC) 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.


Bausch Health Forward Rate of Return (Yacktman) % Related Terms

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


Bausch Health Business Description

Traded in Other Exchanges
Address
2150 Saint Elzear Boulvard West, Laval, QC, CAN, H7L 4A8
Bausch Health Companies Inc is a global specialty pharmaceutical, consumer health, and medical device company with a focus on branded products for the gastroenterology, hepatology, neurology and dermatology markets. The company reports revenue in five segments: Salix; International; Solta Medical; Diversified Products and Bausch + Lomb. It generates maximum revenue from the Bausch + Lomb segment.
Executives
Seana Carson officer: EVP, General Counsel 400 SOMERSET CORPORATE BLVD, BRIDGEWATER NJ 08807
John S Barresi officer: SVP, Controller & CAO 727 FIFTH AVENUE, NEW YORK NY 10022
Richard Mulligan director C/O ICAHN CAPITAL LP, 767 FIFTH AVENUE, SUITE 4700, NEW YORK NY 10153
Tom George Vadaketh officer: EVP, Chief Financial Officer 1727 JOCKEYS WAY, YARDLEY PA 19067
Robert Spurr director, officer: U.S. President-Pharma Business C/O BAUSCH HEALTH COMPANIES INC., 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Joseph F Gordon officer: Pres&Co-Head Bausch&Lomb/Int'l C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Frederick Munsch officer: SVP, Controller and CAO C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Christina Ackermann officer: EVP AND GENERAL COUNSEL C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Sam Eldessouky officer: EVP & Chief Financial Officer C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Steven D Miller director 16690 COLLINS AVENUE, PH, SUNNY ISLE BEACH FL 33160
Von Eschenbach Andrew C. director C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
De Schutter Richard U director C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Brett Icahn director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
William D. Humphries officer: EVP, COMPANY GROUP CHAIRMAN C/O STRATA SKIN SCIENCES, INC., 5 WALNUT GROVE DRIVE SUITE 140, HORSHAM PA 19044
Valueact Capital Master Fund, L.p. director, other: See remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129