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Cassava Sciences (Cassava Sciences) Forward Rate of Return (Yacktman) %

: 0.00% (As of Dec. 2023)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Cassava Sciences's forward rate of return for was 0.00%.

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

During the past 13 years, Cassava Sciences's highest Forward Rate of Return was -0.01. The lowest was -1.48. And the median was -0.10.

SAVA's Forward Rate of Return (Yacktman) % is not ranked *
in the Biotechnology industry.
Industry Median: 10.815
* 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.


Cassava Sciences Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Cassava Sciences'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.

Cassava Sciences Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Cassava Sciences Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - - - - -

Competitive Comparison

For the Biotechnology subindustry, Cassava Sciences'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.


Cassava Sciences Forward Rate of Return (Yacktman) % Distribution

For the Biotechnology industry and Healthcare sector, Cassava Sciences's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Cassava Sciences 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).

Cassava Sciences's Forward Rate of Return of Dec. 2023 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/22.51+0
=0.00 %

* 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.


Cassava Sciences  (NAS:SAVA) 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.


Cassava Sciences Forward Rate of Return (Yacktman) % Related Terms

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


Cassava Sciences (Cassava Sciences) Business Description

Industry
Traded in Other Exchanges
Address
6801 N. Capital of Texas Highway, Suite 300, Building 1, Austin, TX, USA, 78731
Cassava Sciences Inc is a clinical-stage biotechnology company engaged in developing a scientific approach for the treatment and detection of Alzheimer's disease. Its therapeutic product candidate is called simufilam, and it is a novel treatment for Alzheimer's disease; and investigational diagnostic product candidate is called SavaDx, and it is a novel way to detect the presence of Alzheimer's disease from a small sample of blood, possibly years before the overt appearance of clinical symptoms.
Executives
Sanford Robertson director ONE LETTERMAN DRIVE, BUILDING C SUITE 410, SAN FRANCISCO CA 94129
Richard Barry director 285 MARGALITA DRIVE, SAN RAFAEL CA 94901
Robert Christopher Cook officer: SVP & General Counsel 6801 N. CAPITAL OF TEXAS HWY, BUILDING 1, SUITE 300, AUSTIN TX 78731
James William Kupiec officer: Chief Clinical Dev. Officer 7801 N CAPITAL OF TEXAS HIGHWAY, SUITE 260, AUSTIN TX 78731
Eric Schoen officer: Chief Financial Officer 7801 N. CAPITAL OF TX HWY, SUITE 260, AUSTIN TX 78731
Remi Barbier director, 10 percent owner, officer: CEO, Chairman of the Board
Armistice Capital Master Fund Ltd. 10 percent owner C/O ARMISTICE CAPITAL, LLC, 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022
Armistice Capital, Llc 10 percent owner 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022
Steven Boyd 10 percent owner 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022
O Donnell Michael J director
Robert Z Gussin director
Scannon Patrick J Md Phd director C/O XOMA, LTD., 2910 SEVENTH STREET, BERKELEY CA 94710
Saira Ramasastry director 501 CANAL BLVD., RICHMOND CA 94804
Nadav Friedmann director, officer: Chief Scientific Officer
Sabretooth Master Fund, L.p. 10 percent owner 405 LEXINGTON AVENUE, 50TH FLOOR, NEW YORK NY 10174

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