AMLM (American Lithium Minerals) Forward Rate of Return (Yacktman) %: 0.00% (As of Jun. 2011)

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What is American Lithium Minerals Forward Rate of Return (Yacktman) %?

American Lithium Minerals AMLM Forward Rate of Return (Yacktman) % is 0.00% as of Jun. 2011.

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. American Lithium Minerals's forward rate of return for was 0.00%.

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

AMLM's Forward Rate of Return (Yacktman) % is not ranked *
in the Metals & Mining industry.
Industry Median: 9.09
* 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 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.


American Lithium Minerals  (OTCPK:AMLM) 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.


American Lithium Minerals Forward Rate of Return (Yacktman) % Related Terms


American Lithium Minerals Forward Rate of Return (Yacktman) % Historical Data

* Premium members only.

The historical data trend for American Lithium Minerals'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.

American Lithium Minerals Forward Rate of Return (Yacktman) % Chart

American Lithium Minerals Annual Data
Trend Sep06 Sep07 Sep08 Sep09 Sep10
Forward Rate of Return (Yacktman) %
0.00 0.00 0.00 0.00 0.00

American Lithium Minerals Quarterly Data
Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11
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 0.00 0.00 0.00 0.00 0.00

AMLM vs RMES, LITH: Forward Rate of Return (Yacktman) % Comparison

For the Other Industrial Metals & Mining subindustry, American Lithium Minerals'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.


American Lithium Minerals Forward Rate of Return (Yacktman) % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, American Lithium Minerals's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



American Lithium Minerals 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).

American Lithium Minerals's Forward Rate of Return of Jun. 2011 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/0.1951+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.

What does a Forward Rate of Return (Yacktman) % of 0.00% mean?
American Lithium Minerals (AMLM) has a Forward Rate of Return (Yacktman) % of 0.00% as of Jun. 2011. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on American Lithium Minerals and its competitors.
Is American Lithium Minerals' Forward Rate of Return (Yacktman) % too high?
American Lithium Minerals' current Forward Rate of Return (Yacktman) % is 0.00%.
How does American Lithium Minerals' Forward Rate of Return (Yacktman) % compare to RMES and LITH?
American Lithium Minerals' Forward Rate of Return (Yacktman) % of 0.00% can be compared against companies in the Metals & Mining industry. The industry median Forward Rate of Return (Yacktman) % is 9.09. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Metals & Mining company?
The median Forward Rate of Return (Yacktman) % among Metals & Mining companies is 9.09, based on 444 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on American Lithium Minerals and its competitors. For the Metals & Mining industry, the median Forward Rate of Return (Yacktman) % is 9.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Lithium Minerals's current Forward Rate of Return (Yacktman) % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Lithium Minerals stock overvalued right now?
American Lithium Minerals (AMLM) has a current Forward Rate of Return (Yacktman) % of 0.00%. The current Forward Rate of Return (Yacktman) % is 0.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For American Lithium Minerals (AMLM), the current Forward Rate of Return (Yacktman) % is 0.00% as of Jun. 2011. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

American Lithium Minerals Business Description

Address 6440 Sky Pointe Drive, Suite 140-149, Las Vegas, NV, USA, 89131
American Lithium Minerals Inc. is engaged in the acquisition and exploration of mining properties. The company focuses on exploring lithium, uranium, and rare earth elements. Its projects include the Sarcobatus Lithium Project, located at Scotty's Junction in Nye County, Nevada, and the Kingman Rare Earth Project, situated about 5 miles north of Kingman, Arizona, on the eastern flank of Bull Mountain.