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China South City Holdings (FRA:CS4) Forward Rate of Return (Yacktman) % : 45.70% (As of Mar. 2022)


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What is China South City Holdings Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. China South City Holdings's forward rate of return for was 45.70%.

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

FRA:CS4' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 15.27   Med: 37.75   Max: 331.31
Current: 190.13

During the past 13 years, China South City Holdings's highest Forward Rate of Return was 331.31. The lowest was 15.27. And the median was 37.75.

FRA:CS4's Forward Rate of Return (Yacktman) % is ranked better than
98.44% of 1285 companies
in the Real Estate industry
Industry Median: 5.3 vs FRA:CS4: 190.13

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.


China South City Holdings Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for China South City Holdings'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.

China South City Holdings Forward Rate of Return (Yacktman) % Chart

China South City Holdings Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.47 29.75 49.33 41.93 45.70

China South City Holdings Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Jun24
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 45.70 - - - -

Competitive Comparison of China South City Holdings's Forward Rate of Return (Yacktman) %

For the Real Estate - Development subindustry, China South City Holdings'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.


China South City Holdings's Forward Rate of Return (Yacktman) % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, China South City Holdings's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where China South City Holdings's Forward Rate of Return (Yacktman) % falls into.



China South City Holdings 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).

China South City Holdings's Forward Rate of Return of Mar. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0.0495/0.0755+-0.1754
=48.02 %

* 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.


China South City Holdings  (FRA:CS4) 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.


China South City Holdings Forward Rate of Return (Yacktman) % Related Terms

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China South City Holdings Business Description

Industry
Traded in Other Exchanges
Address
The Gateway, 15 Canton Road, Suite 3306-08, 33rd Floor, Tower 5, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
China South City Holdings Ltd develops and operates large-scale integrated logistics and trade centers in China. It operates in three segments that include property development, property investment and management, and others. The majority of the revenue is generated from the property development segments that include the development of integrated logistics and trade centers and residential and commercial ancillary facilities. The majority of its operations are conducted in the People's Republic of China.

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