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LIC Housing Finance (BOM:500253) Forward Rate of Return (Yacktman) % : 0.00% (As of Mar. 2025)


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What is LIC Housing Finance Forward Rate of Return (Yacktman) %?

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

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

During the past 13 years, LIC Housing Finance's highest Forward Rate of Return was 12.48. The lowest was -127.77. And the median was -60.48.

BOM:500253's Forward Rate of Return (Yacktman) % is not ranked *
in the Banks industry.
Industry Median: 13.87
* 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.


LIC Housing Finance Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for LIC Housing Finance'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.

LIC Housing Finance Forward Rate of Return (Yacktman) % Chart

LIC Housing Finance Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -60.82 -82.06 -95.29 -39.15 -

LIC Housing Finance Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -39.15 - - - -

Competitive Comparison of LIC Housing Finance's Forward Rate of Return (Yacktman) %

For the Mortgage Finance subindustry, LIC Housing Finance'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.


LIC Housing Finance's Forward Rate of Return (Yacktman) % Distribution in the Banks Industry

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

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


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LIC Housing Finance 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).

LIC Housing Finance's Forward Rate of Return of Mar. 2025 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=-290.10866667/563.7+0.1248
=-38.99 %

* 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.


LIC Housing Finance  (BOM:500253) 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.


LIC Housing Finance Forward Rate of Return (Yacktman) % Related Terms

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


LIC Housing Finance Business Description

Industry
Traded in Other Exchanges
Address
131 Maker Tower, F Premises, 13th Floor, Cuffe Parade, Mumbai, MH, IND, 400 005
LIC Housing Finance Ltd is a housing finance company that provides loans in India. Its main objective is to provides long-term finance to individuals for the purchase or construction of houses/flats for residential purposes. also provides finance on existing property for business/ personal needs and also gives loans to professionals for the purchase/ construction of clinics, nursing homes, diagnostic centres, office spaces, and equipment. The company also provides finance to builders and developers engaged in the business of construction of houses or flats for residential purposes and to be sold by them.

LIC Housing Finance Headlines

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