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Williams Partners LP (FRA:WP8) Forward Rate of Return (Yacktman) % : -27.19% (As of Sep. 2014)


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What is Williams Partners LP Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Williams Partners LP's forward rate of return for was -27.19%.

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

FRA:WP8' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -29.7   Med: 2.05   Max: 89.6
Current: -26.84

During the past 12 years, Williams Partners LP's highest Forward Rate of Return was 89.60. The lowest was -29.70. And the median was 2.05.

FRA:WP8's Forward Rate of Return (Yacktman) % is not ranked
in the Oil & Gas industry.
Industry Median: 12.89 vs FRA:WP8: -26.84

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.


Williams Partners LP Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Williams Partners LP'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.

Williams Partners LP Forward Rate of Return (Yacktman) % Chart

Williams Partners LP Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 93.40 40.78 24.57 11.41 -21.73

Williams Partners LP Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 -12.28 -21.73 -26.49 -28.55 -27.19

Competitive Comparison of Williams Partners LP's Forward Rate of Return (Yacktman) %

For the Oil & Gas Midstream subindustry, Williams Partners LP'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.


Williams Partners LP's Forward Rate of Return (Yacktman) % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Williams Partners LP's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Williams Partners LP 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).

Williams Partners LP's Forward Rate of Return of Sep. 2014 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=1.29809524/41.508+-0.3143
=-28.30 %

* 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.


Williams Partners LP  (FRA:WP8) 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.


Williams Partners LP Forward Rate of Return (Yacktman) % Related Terms

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


Williams Partners LP (FRA:WP8) Business Description

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Williams Partners LP is a publicly traded Delaware limited partnership formed by The Williams Companies, Inc. (Williams) in 2005. It is an energy infrastructure company. The Company is engaged in natural gas transportation; gathering, treating, and processing; storage; NGL fractionation; olefins production; and oil transportation. The operations of its businesses are located in North America. The Company's operations are divided into four business segments: Northeast G&P — this segment includes its natural gas gathering and processing and NGL fractionation businesses in the Marcellus and Utica shale regions, Atlantic-Gulf — this segment includes its interstate natural gas pipeline, Transco, and significant natural gas gathering and processing and crude oil production handling and transportation in the Gulf Coast region, West — this segment includes its natural gas gathering, processing and treating operations in New Mexico, Colorado, and Wyoming and its interstate natural gas pipeline, Northwest Pipeline, and NGL & Petchem Services — this segment includes its NGL and natural gas marketing business, an NGL fractionator and storage facilities near Conway, Kansas. The Company markets NGL products to a wide range of users in the energy and petrochemical industries. The NGL marketing business transports and markets its equity NGLs from the production at its processing plants, and also markets NGLs on behalf of third-party NGL producers, including some of our fee-based processing customers, and the NGL volumes owned by Discovery. The Company also market olefin products to a wide range of users in the energy and petrochemical industries. Its gathering and processing business competes with other midstream companies, interstate and intrastate pipelines, producers and independent gatherers and processors. The Company's operations are subject to federal environmental laws and regulations as well as the state, local, and tribal laws and regulations adopted by the jurisdictions in which they operate.

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