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Cape Bancorp (Cape Bancorp) Forward Rate of Return (Yacktman) % : 0.00% (As of Dec. 2015)


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What is Cape Bancorp Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Cape Bancorp's forward rate of return for was 0.00%.

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

CBNJ's Forward Rate of Return (Yacktman) % is not ranked *
in the Banks industry.
Industry Median: 18.07
* Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.

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.


Cape Bancorp Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Cape Bancorp'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.

Cape Bancorp Forward Rate of Return (Yacktman) % Chart

Cape Bancorp Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.22 11.62 11.85 - -

Cape Bancorp Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 - - - - -

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

For the Banks - Regional subindustry, Cape Bancorp'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.


Cape Bancorp's Forward Rate of Return (Yacktman) % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Cape Bancorp's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Cape Bancorp 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).

Cape Bancorp's Forward Rate of Return of Dec. 2015 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=1.36609524/12.43+0.038
=14.79 %

* 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.


Cape Bancorp  (NAS:CBNJ) 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.


Cape Bancorp Forward Rate of Return (Yacktman) % Related Terms

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


Cape Bancorp (Cape Bancorp) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Cape Bancorp Inc., is a Maryland corporation that was incorporated on September 14, 2007. It is a bank holding company of Cape Bank. The Bank provides a complete line of business and personal banking products throughout its branch network located throughout Atlantic and Cape May counties in southern New Jersey. It is a community bank focused on providing deposit and loan products to retail customers and to small and mid-sized businesses. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial mortgages, commercial business loans, residential mortgage loans, home equity loans and lines of credit and construction loans. Its retail and business banking deposit products include savings accounts, checking accounts, money market accounts, and certificates of deposit with terms ranging from 30 days to 60 months. The Company also maintains an investment portfolio. It offers a variety of loans, including commercial mortgages, commercial loans, residential mortgage loans, home equity loans and lines of credit, and construction loans. The Bank offers commercial mortgage loans secured by real estate mainly with interest rates that adjust every three to five years. It offers two types of residential mortgage loans: fixed-rate loans and adjustable-rate loans. It offers fixed rate mortgage loans with terms of up to 30 years. It offers commercial business loans to professionals, sole proprietorships and small businesses in its market area. It offers interim construction financing secured by residential property for the purpose of constructing one- to four-family homes. It offers consumer loans secured by certificates of deposit held at Cape Bank, the pricing of which is based upon the rate of the certificate of deposit. The Company faces competition for investors' funds from money market funds, mutual funds and other corporate and government securities.
Executives
Thomas K Ritter director 120 CAMBRIDGE AVENUE, LINWOOD NJ 08221
James F. Deutsch director C/O STERLING NATIONAL BANK, 400 RELLA BOULEVARD, MONTEBELLO NY 10901
Michael D Devlin director, officer: President and CEO 834 CENTRAL AVENUE, P.O. BOX 189, HAMMONTON NJ 08037
James J Lynch director PATRIOT FINANCIAL PARTNERS, LP, 2929 ARCH STREET, 27TH FLOOR, PHILADELPHIA PA 19104

Cape Bancorp (Cape Bancorp) Headlines

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