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Park Sterling (Park Sterling) Forward Rate of Return (Yacktman) % : 23.82% (As of Sep. 2017)


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What is Park Sterling Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Park Sterling's forward rate of return for was 23.82%.

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

PSTB's Forward Rate of Return (Yacktman) % is not ranked *
in the Banks industry.
Industry Median: 18.02
* 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.


Park Sterling Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Park Sterling'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.

Park Sterling Forward Rate of Return (Yacktman) % Chart

Park Sterling Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only - 2.83 - - -

Park Sterling Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 - - - 24.83 23.82

Competitive Comparison of Park Sterling's Forward Rate of Return (Yacktman) %

For the Banks - Regional subindustry, Park Sterling'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.


Park Sterling's Forward Rate of Return (Yacktman) % Distribution in the Banks Industry

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

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



Park Sterling 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).

Park Sterling's Forward Rate of Return of Sep. 2017 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=0.47238095/12.36+0.0421
=8.03 %

* 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.


Park Sterling  (NAS:PSTB) 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.


Park Sterling Forward Rate of Return (Yacktman) % Related Terms

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


Park Sterling (Park Sterling) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Park Sterling Corp acts as a holding company for Park Sterling Bank. The company provides banking services to small and mid-sized businesses, owner-occupied and income-producing real estate owners, residential builders, institutions and professionals. Products of the company include personal, business and non-profit checking accounts, IOLTA (Interest on Lawyers' Trust Accounts) accounts, individual retirement accounts, business and personal money market accounts, time deposits, safe deposit boxes and online and mobile banking. In addition, it also provides lending activities include short- to medium-term commercial, real estate, construction, residential mortgage and consumer loans, as well as long-term residential mortgages. Revenue of the company mainly consists of interest income.
Executives
Donald K Truslow officer: Chief Financial Officer ONE M&T PLAZA, BUFFALO NY 14203
Larry W. Carroll director C/O PARK STERLING BANK, 1043 EAST MOREHEAD STREET, SUITE 201, CHARLOTTE NC 28204
Jean E Davis director
James C. Cherry director, officer: CEO C/O PARK STERLING BANK, 1043 EAST MOREHEAD STREET, SUITE 201, CHARLOTTE NC 28204
Donald E Pickett officer: Principal Accounting Officer C/O SCBT FINANCIAL CORPORATION, 520 GERVAIS STREET, COLUMBIA SC 29201
Thomas B Henson director THOMAS B HENSON, 2131 AYRSLEY TOWN BOULEVARD, SUITE 300, CHARLOTTE NC 28273
Walter C Ayers director 8903 SIERRA ROAD RICHMOND VA 23229
Stephen A. Arnall officer: Principal Accounting Officer C/O PARK STERLING BANK, 1043 EAST MOREHEAD STREET, SUITE 201, CHARLOTTE NC 28204

Park Sterling (Park Sterling) Headlines

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