What is Cabela′s Forward Rate of Return (Yacktman) %?
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Cabela′s's forward rate of return for was 5.92%.
The historical rank and industry rank for Cabela′s's Forward Rate of Return (Yacktman) % or its related term are showing as below:
CAB's Forward Rate of Return (Yacktman) % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 14.46 * 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.
Cabela′s Forward Rate of Return (Yacktman) % Historical Data
The historical data trend for Cabela′s'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.
Cabela′s Forward Rate of Return (Yacktman) % Chart
Competitive Comparison of Cabela′s's Forward Rate of Return (Yacktman) %
For the Specialty Retail subindustry, Cabela′s'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.
Cabela′s's Forward Rate of Return (Yacktman) % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Cabela′s's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Cabela′s's Forward Rate of Return (Yacktman) % falls into.
Cabela′s 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).
Cabela′s's Forward Rate of Return of Jun. 2017 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.97161905
/
59.42
+
0.0428
=
5.92 %
* 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.
Cabela′s (NYSE:CAB) 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.
Cabela′s Forward Rate of Return (Yacktman) % Related Terms
Thank you for viewing the detailed overview of Cabela′s's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cabela's Inc was founded in 1961. The Company is a specialty retailer, and the direct marketer, of hunting, fishing, camping, and related outdoor merchandise. It also issues Cabela's CLUB Visa credit card, which serves as its customer loyalty rewards program. The Company operates in four segments Retail, Direct, Financial Services, and Corporate Overhead and Other. In retail segment the Company operated 77 retail stores, 68 stores in 36 states and nine stores in six Canadian provinces. During 2015, it opened 13 retail stores, 11 stores in the United States and two in Canada. It has two basic store formats. Its legacy stores refer to traditional retail stores that opened in August 2008 and earlier. It has 28 traditional, or legacy, retail stores, which offers a tourist-type experience. Its retail stores often attract the construction and development of hotels, restaurants, and other retail establishments adjacent to these stores. The Direct segment sells products through its e-commerce websites (Cabelas.com and Cabelas.ca) and direct mail catalogs. It markets its products through websites, mobile devices, and its print catalog distributions. The Financial Services segment provides customers with a rewards program that enhances revenue, operating profitability, and customer loyalty in its Retail and Direct businesses. Through its wholly-owned bank subsidiary, World's Foremost Bank, it issues and manages the Cabela's CLUB Visa credit card, a rewards based credit card program. The Company's product assortments includes merchandise and equipment for hunting, fishing, marine use, camping, and recreational sport shooting, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme. The Corporate Overhead and Other segment includes the value of unredeemed points earned that are associated with the Company's loyalty rewards programs for Cabela's CLUB issued credit cards, net of the estimated costs of the points; amounts received from outfitter services; real estate rental income; land sales; and fees earned from a travel business and other complementary business services. The Company competes with the outdoor recreation and casual apparel and footwear markets. It competes directly or indirectly with other broad-line merchants, large-format sporting goods stores and chains, mass merchandisers, warehouse clubs, discount and department stores, small specialty retailers, and catalog and Internet-based retailers.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CAB has been successfully added to your 