GURUFOCUS.COM » STOCK LIST » Technology » Software » Intuit Inc (NAS:INTU) » Definitions » Forward Rate of Return (Yacktman) %

INTU (Intuit) Forward Rate of Return (Yacktman) % : 18.80% (As of Jul. 2024)


View and export this data going back to 1993. Start your Free Trial

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

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Intuit's forward rate of return for was 18.80%.

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

INTU' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.01   Med: 14.62   Max: 20.59
Current: 18.89

During the past 13 years, Intuit's highest Forward Rate of Return was 20.59. The lowest was 3.01. And the median was 14.62.

INTU's Forward Rate of Return (Yacktman) % is ranked better than
66.43% of 1248 companies
in the Software industry
Industry Median: 13.42 vs INTU: 18.89

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.


Intuit Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Intuit'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.

Intuit Forward Rate of Return (Yacktman) % Chart

Intuit Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.61 14.14 15.73 17.81 18.80

Intuit Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 17.81 18.37 18.21 18.91 18.80

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

For the Software - Application subindustry, Intuit'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.


Intuit's Forward Rate of Return (Yacktman) % Distribution in the Software Industry

For the Software industry and Technology sector, Intuit's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Intuit 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).

Intuit's Forward Rate of Return of Jul. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=12.46057143/647.35+0.1688
=18.80 %

* 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.


Intuit  (NAS:INTU) 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.


Intuit Forward Rate of Return (Yacktman) % Related Terms

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


Intuit Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Intuit Inc (NAS:INTU) » Definitions » Forward Rate of Return (Yacktman) %
Address
2700 Coast Avenue, Mountain View, CA, USA, 94043
Intuit is a provider of small-business accounting software (QuickBooks), personal tax solutions (TurboTax), and professional tax offerings (Lacerte). Founded in the mid-1980s, Intuit controls the majority of US market share for small-business accounting and do-it-yourself tax-filing software.
Executives
Laura A Fennell officer: VP, General Counsel, Corp. Sec C/O INTUIT INC., PO BOX 7850, MOUNTAIN VIEW CA 94039-7850
Eve B Burton director 770 BROADWAY, NEW YORK NY 10003
Scott D Cook director, officer: Chairman, Executive Committee C/O INTUIT INC, 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Alex G. Balazs officer: EVP, Chief Technology Officer C/O INTUIT INC., 2700 COAST AVE, MOUNTAIN VIEW CA 94043
Sandeep Aujla officer: EVP and CFO C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Kerry J Mclean officer: SVP, General Counsel C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Mark P. Notarainni officer: EVP, Consumer Group C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Lauren D Hotz officer: VP, Chief Accounting Officer C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Raul Vazquez director 500 STAPLES DR., FRAMINGHAM MA 01702
Sasan K Goodarzi officer: Senior Vice President C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Marianna Tessel officer: EVP, Chief Technology Officer C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
James Alexander Chriss officer: EVP and GM SBSEG C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Michelle M Clatterbuck officer: EVP and CFO C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Ryan Roslansky director C/O GODADDY INC., 2155 E. GODADDY WAY, TEMPE AZ 85284
Eric S. Yuan director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113