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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Servisfirst Bancshares's forward rate of return for was 20.57%.
The historical rank and industry rank for Servisfirst Bancshares's Forward Rate of Return (Yacktman) % or its related term are showing as below:
During the past 13 years, Servisfirst Bancshares's highest Forward Rate of Return was 25.82. The lowest was 20.01. And the median was 22.52.
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 Servisfirst Bancshares'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.
Servisfirst Bancshares Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Forward Rate of Return (Yacktman) % | Get a 7-Day Free Trial |
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21.44 | 22.54 | 20.36 | 21.56 | 20.57 |
Servisfirst Bancshares 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 |
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22.89 | 24.87 | 22.28 | 20.57 | - |
For the Banks - Regional subindustry, Servisfirst Bancshares'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 Banks industry and Financial Services sector, Servisfirst Bancshares's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Servisfirst Bancshares'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).
Servisfirst Bancshares's Forward Rate of Return of Dec. 2023 is
Forward Rate of Return | = | Normalized Free Cash Flow | / | Price | + | 5-Year Book Value Growth Rate |
= | 3.74780952 | / | 66.36 | + | 0.1426 | |
= | 19.91 % |
* 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.
Servisfirst Bancshares (NYSE:SFBS) 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 Book Value 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 Servisfirst Bancshares's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rodney Eldon Rushing | officer: EVP-Correspondent Banking | 2500 WOODCREST PLACE, BIRMINGHAM AL 35209 |
Kirk Pressley | officer: EVP, Strategic Planning | 2500 WOODCREST PLACE, BIRMINGHAM AL 35209 |
Thomas A Broughton | director, officer: President and CEO | 4229 OLD BROOK TRAIL, BIRMINGHAM AL 35243 |
Irma Loya Tuder | director | 116 CLIFTS COVE, MADISON AL 35758 |
Smith Hatton C.v. | director | 160 CLEAGE DRIVE, BIRMINGHAM AL 35217 |
Elizabeth Bugg Holloway | director | 7 MONTCREST DRIVE, BIRMINGHAM AL 35213 |
James J Filler | director | 2964 SHOOK HILL PARKWAY, BIRMINGHAM AL 35223 |
William M Foshee | officer: EVP & CFO | 5120 STRATFORD ROAD, BIRMINGHAM AL 35242 |
J. Richard Cashio | director | 3200 STERLING ROAD, BIRMINGHAM AL 35213 |
Henry Fulbrook Abbott | officer: SVP, Chief Credit Officer | 2500 WOODCREST PLACE, BIRMINGHAM AL 35209 |
Andrew N Kattos | officer: EVP, Huntsville Pres. of Bank | P. O. BOX 18127, HUNTSVILLE AL 35804 |
G. Carlton Barker | officer: EVP, Montgomery Pres. of Bank | P. O. BOX 4008, MONTGOMERY AL 36104 |
Pouncey Clarence C. Iii | officer: Executive VP and COO | P. O. BOX 1508, BIRMINGHAM AL 35201-1508 |
Morris Buford Harrison Iii | officer: EVP - Regional CEO | 3207 FOXRIDGE ROAD, DOTHAN AL 36303 |
Rex D Mckinney | officer: CEO - ServisFirst Bk Pensacola | SERVISFIRST BANK, 316 S BAYLEN ST, STE 100, PENSACOLA FL 35202 |
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