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Invesco Seniorome Trust (Invesco Seniorome Trust) Forward Rate of Return (Yacktman) % : 9.79% (As of Feb. 2024)


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What is Invesco Seniorome Trust Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Invesco Seniorome Trust's forward rate of return for was 9.79%.

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

VVR' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 7.26   Med: 8.12   Max: 9.76
Current: 9.09

During the past 7 years, Invesco Seniorome Trust's highest Forward Rate of Return was 9.76. The lowest was 7.26. And the median was 8.12.

VVR's Forward Rate of Return (Yacktman) % is ranked better than
65.54% of 1210 companies
in the Asset Management industry
Industry Median: 5.47 vs VVR: 9.09

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.


Invesco Seniorome Trust Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Invesco Seniorome Trust'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.

Invesco Seniorome Trust Forward Rate of Return (Yacktman) % Chart

Invesco Seniorome Trust Annual Data
Trend Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial - - - 7.81 9.79

Invesco Seniorome Trust Semi-Annual Data
Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 - - 7.81 - 9.79

Competitive Comparison of Invesco Seniorome Trust's Forward Rate of Return (Yacktman) %

For the Asset Management subindustry, Invesco Seniorome Trust'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.


Invesco Seniorome Trust's Forward Rate of Return (Yacktman) % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Invesco Seniorome Trust's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Invesco Seniorome Trust 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).

Invesco Seniorome Trust's Forward Rate of Return of Feb. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=0.538/4.15+-0.0317
=9.79 %

* 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.


Invesco Seniorome Trust  (NYSE:VVR) 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.


Invesco Seniorome Trust Forward Rate of Return (Yacktman) % Related Terms

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


Invesco Seniorome Trust (Invesco Seniorome Trust) Business Description

Traded in Other Exchanges
N/A
Address
1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA, USA, 30309
Invesco Senior Income Trust is a diversified, closed-end management investment company. The investment objective of the company is to provide a high level of current income, consistent with the preservation of capital. The company invests primarily in a portfolio of interests in floating or variable senior loans to corporations, partnerships, and other entities which operate in a variety of industries and geographic regions.
Executives
Glenn Eugene Brightman officer: President & PEO 570 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Stephanie Butcher officer: Senior Vice President 1555 PEACHTREE ST. NE, ATLANTA GA 30309
Tony Wong director, officer: Senior Vice President 1331 SPRING STREET NW, SUITE 2500, ATLANTA GA 30309
Melanie Ringold officer: SVP, CLO and Secretary 1555 PEACHTREE STREE NE, SUITE 1800, ATLANTA GA 30309
Terry Vacheron officer: Chief Financial Officer 1555 PEACHTREE ST. NE, SUITE 1800, ATLANTA GA 30309
Bordewick James R Jr officer: Senior Officer & SVP C/O BANC OF AMERICA INVESTMENT ADVISORS, 100 FEDERAL STREET, BOSTON MA 02110
Antonio Reina officer: Secretary 1555 PEACHTREE STREET NE SUITE 1800, ATLANTA GA 30309
Benjamin Gruder officer: Co-CAO 1555 PEACHTREE STREET, NE SUITE 1800, ATLANTA GA 30309
Josh E Levit officer: Chief Compliance Officer 1555 PEACHTREE STREET NE SUITE 1800, ATLANTA GA 30309
Adrien Deberghes officer: Vice President,PFO & Treasurer 1555 PEACHTREE STREET NE SUITE 1800, ATLANTA GA 30309
Haley S Waldron officer: Chief Accounting Officer 1555 PEACHTREE STREET NE SUITE 1800, ATLANTA GA 30309
Laura Allison Dukes officer: SMD and CFO 780 JOHNSON FERRY ROAD, SUITE 800, ATLANTA GA 30342
Tara Mcaleer officer: Chief Compliance Officer 1555 PEACHTREE STREET NE, ATLANTA GA 30309
Loren M Starr director
Stephen William Swanson officer: Secretary and General Counsel 1555 PEACHTREE STREET NE, ATLANTA GA 30309