BID has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
BID has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Sothebys's forward rate of return for was 6.78%.
The historical rank and industry rank for Sothebys's Forward Rate of Return (Yacktman) % or its related term are showing as below:
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 Sothebys'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.
Sothebys Annual Data | |||||||||||||||||||||
Trend | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | |||||||||||
Forward Rate of Return (Yacktman) % | Get a 7-Day Free Trial | 11.70 | 6.39 | 1.50 | 5.50 | 5.58 |
Sothebys Quarterly Data | ||||||||||||||||||||
Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | |
Forward Rate of Return (Yacktman) % | Get a 7-Day Free Trial | 4.80 | 1.72 | 5.58 | 3.35 | 6.78 |
For the Specialty Retail subindustry, Sothebys'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 Retail - Cyclical industry and Consumer Cyclical sector, Sothebys's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Sothebys'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).
Sothebys's Forward Rate of Return of Jun. 2019 is
Forward Rate of Return | = | Normalized Free Cash Flow | / | Price | + | 5-Year EBITDA Growth Rate |
= | 2.38685714 | / | 58.13 | + | 0.0267 | |
= | 6.78 % |
* 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.
Sothebys (NYSE:BID) 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.
Thank you for viewing the detailed overview of Sothebys's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Jessica M Bibliowicz | director | NATIONAL FINANCIAL PARTNERS CORP., 340 MADISON AVENUE, 20TH FL, NEW YORK NY 10173 |
Dennis M Weibling | director | 2300 CARILLON POINT, KIRKLAND WA 98033 |
Jill Bright | officer: EVP of HR and Administration | 1334 YORK AVENUE, NEW YORK NY 10021 |
Michael F Goss | officer: EVP, Chief Financial Officer | BAIN CAPITAL PARTNERS LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116 |
Michael J Wolf | director | 401 CITY AVENUE, SUITE 809, BALA CYNWYD PA 19004 |
Smith, Jr. Thomas S. | director, officer: President and CEO | 2 PENN PLAZA, NEW YORK NY 10121 |
Kevin C. Conroy | director | C/O NEWELL RUBBERMAID INC., 3 GLENLAKE PKWY., ATLANTA GA 30328 |
Sole Domenico De | director | C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105 |
Diana L Taylor | director | ALLINAZ GLOBAL INVESTORS, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10106 |
Daniel S Loeb | director, 10 percent owner, other: See Remarks | THIRD POINT LLC, 390 PARK AVENUE, NEW YORK NY 10022 |
Third Point Llc | 10 percent owner | 55 HUDSON YARDS, NEW YORK NY 10001 |
Harry James Wilson | director | VISTEON CORPORATION, ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111 |
Patrick Drahi | 10 percent owner | WIESTISTRASSE 14, ZERMATT V8 3920 |
Kevin M Delaney | officer: SVP, Corp. Controller & CAO | IMAX CORPORATION, 902 BROADWAY, 20TH FLOOR, NEW YORK NY 10010-6002 |
Lisa Nadler | officer: EVP, WW Chief HR Officer | 1334 YORK AVE, NEW YORK NY 10021 |
From GuruFocus
By PRNewswire PRNewswire • 06-17-2019
By Marketwired Marketwired • 06-17-2019
By Marketwired Marketwired • 07-31-2019
By PRNewswire PRNewswire • 09-19-2019
By Marketwired Marketwired • 05-02-2019
By Sydnee Gatewood Sydnee Gatewood • 06-17-2019
By Marketwired Marketwired • 06-17-2019
By PRNewswire PRNewswire • 05-16-2022
By PRNewswire PRNewswire • 07-15-2022
By PRNewswire PRNewswire • 05-10-2019
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.