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First Robinson Financial (First Robinson Financial) Forward Rate of Return (Yacktman) % : 0.00% (As of Mar. 2018)


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What is First Robinson Financial Forward Rate of Return (Yacktman) %?

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

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

FRFC's Forward Rate of Return (Yacktman) % is not ranked *
in the Banks industry.
Industry Median: 17.87
* 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.


First Robinson Financial Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for First Robinson Financial'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.

First Robinson Financial Forward Rate of Return (Yacktman) % Chart

First Robinson Financial Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar14 Mar15 Mar17 Mar18
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.65 17.65 38.13 - -

First Robinson Financial Quarterly Data
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec16 Mar17 Dec17 Mar18
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 46.36 - - - -

Competitive Comparison of First Robinson Financial's Forward Rate of Return (Yacktman) %

For the Banks - Regional subindustry, First Robinson Financial'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.


First Robinson Financial's Forward Rate of Return (Yacktman) % Distribution in the Banks Industry

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

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



First Robinson Financial 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).

First Robinson Financial's Forward Rate of Return of Mar. 2018 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=2.64857143/44+0.0564
=11.66 %

* 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.


First Robinson Financial  (OTCPK:FRFC) 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.


First Robinson Financial Forward Rate of Return (Yacktman) % Related Terms

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


First Robinson Financial (First Robinson Financial) Business Description

Traded in Other Exchanges
N/A
Address
501 East Main Street, Robinson, IL, USA, 62454
First Robinson Financial Corp is a bank holding company. The bank is primarily engaged in providing a full range of banking and financial services to individual and corporate customers in Crawford and surrounding counties in Illinois and Knox and surrounding counties in Indiana. The company offers a range of loan products, personal banking, business banking, Accounts and mobile services, and Education and planning.

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