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Sumitomo Mitsui Financial Group Forward Rate of Return (Yacktman) %

: 0.00% (As of Sep. 2021)
View and export this data going back to 2006. Start your Free Trial

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

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

NYSE:SMFG' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -4.45   Med: 65.02   Max: 140.13
Current: 120.73

-4.45
140.13

During the past 13 years, Sumitomo Mitsui Financial Group's highest Forward Rate of Return was 140.13. The lowest was -4.45. And the median was 65.02.

NYSE:SMFG's Forward Rate of Return (Yacktman) % is ranked higher than
94% of the 1208 Companies
in the Banks industry.

( Industry Median: 16.82 vs. NYSE:SMFG: 120.73 )

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.


Sumitomo Mitsui Financial Group Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Sumitomo Mitsui Financial Group'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.

Sumitomo Mitsui Financial Group Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 73.87 83.96 98.96 136.35 125.08

Sumitomo Mitsui Financial Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Forward Rate of Return (Yacktman) % 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 Premium Member Only Premium Member Only Premium Member Only - - 125.08 - -

Competitive Comparison

For the Banks - Diversified subindustry, Sumitomo Mitsui Financial Group'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.

   

Sumitomo Mitsui Financial Group Forward Rate of Return (Yacktman) % Distribution

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

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



Sumitomo Mitsui Financial Group 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).

Sumitomo Mitsui Financial Group's Forward Rate of Return of Sep. 2021 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=8.85166667/7.25+0.0622
=128.31 %

* 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.


Sumitomo Mitsui Financial Group  (NYSE:SMFG) 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.


Sumitomo Mitsui Financial Group Forward Rate of Return (Yacktman) % Related Terms

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


Sumitomo Mitsui Financial Group Business Description

Sumitomo Mitsui Financial Group logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6029
Address
1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, JPN, 100-0005
Sumitomo Mitsui Financial Group is roughly tied with Mizuho Financial Group for the status of Japan's second-largest bank after Mitsubishi UFJ Financial Group. As of December 2020, its market share of domestic loans was 7.1%, compared with 8.5% for MUFG. It has a larger consumer finance business than the other two megabanks, owning 100% of the Promise business and SMBC Card. It also controls one of Japan's largest leasing companies and SMBC Aviation Capital, one of the top five aircraft lessors globally. In securities, its SMBC Nikko unit is Japan's third-largest retail broker, although SMFG has lagged somewhat in institutional securities business and asset management, areas that it is working on strengthening.

Sumitomo Mitsui Financial Group Headlines

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