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Blackrock Enhanced Cap&Inc Fund, (Blackrock Enhanced Cap&Inc Fund,) Forward Rate of Return (Yacktman) % : 10.52% (As of Dec. 2023)


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What is Blackrock Enhanced Cap&Inc Fund, Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Blackrock Enhanced Cap&Inc Fund,'s forward rate of return for was 10.52%.

The historical rank and industry rank for Blackrock Enhanced Cap&Inc Fund,'s Forward Rate of Return (Yacktman) % or its related term are showing as below:

CII' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 9.95   Med: 10.37   Max: 10.83
Current: 10.29

During the past 7 years, Blackrock Enhanced Cap&Inc Fund,'s highest Forward Rate of Return was 10.83. The lowest was 9.95. And the median was 10.37.

CII's Forward Rate of Return (Yacktman) % is ranked better than
69.15% of 1209 companies
in the Asset Management industry
Industry Median: 5.66 vs CII: 10.29

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.


Blackrock Enhanced Cap&Inc Fund, Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Blackrock Enhanced Cap&Inc Fund,'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.

Blackrock Enhanced Cap&Inc Fund, Forward Rate of Return (Yacktman) % Chart

Blackrock Enhanced Cap&Inc Fund, Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial - - - 10.71 10.52

Blackrock Enhanced Cap&Inc Fund, Semi-Annual Data
Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - - 10.71 - 10.52

Competitive Comparison of Blackrock Enhanced Cap&Inc Fund,'s Forward Rate of Return (Yacktman) %

For the Asset Management subindustry, Blackrock Enhanced Cap&Inc Fund,'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.


Blackrock Enhanced Cap&Inc Fund,'s Forward Rate of Return (Yacktman) % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Blackrock Enhanced Cap&Inc Fund,'s Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Blackrock Enhanced Cap&Inc Fund,'s Forward Rate of Return (Yacktman) % falls into.



Blackrock Enhanced Cap&Inc Fund, 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).

Blackrock Enhanced Cap&Inc Fund,'s Forward Rate of Return of Dec. 2023 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=1.23883333/19+0.04
=10.52 %

* 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.


Blackrock Enhanced Cap&Inc Fund,  (NYSE:CII) 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.


Blackrock Enhanced Cap&Inc Fund, Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Blackrock Enhanced Cap&Inc Fund,'s Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Blackrock Enhanced Cap&Inc Fund, (Blackrock Enhanced Cap&Inc Fund,) Business Description

Traded in Other Exchanges
N/A
Address
100 Bellevue Parkway, Wilmington, DE, USA, 19809
Blackrock Enhanced Cap&Inc Fund, Inc is a closed-end management investment company. Its objective is to provide total return through a combination of current income and capital appreciation. The trust seeks to achieve its investment objective by investing a majority of its total assets in a portfolio of equity securities of U.S. and foreign issuers.
Executives
Arthur Philip Steinmetz director 50 HUDSON YARDS, NEW YORK NY 10001
Aaron David Wasserman officer: Chief Compliance Officer 50 HUDSON YARDS, NEW YORK NY 10001
Lorenzo Flores director 2100 LOGIC DRIVE, SAN JOSE CA 95124
James Phillip Holloman director P.O. BOX 625737, 6800 CINTAS BOULEVARD, CINCINNATI OH 45262
Stayce D. Harris director 1999 S. BASCOM AVE., SUITE 700, CAMPBELL CA 95008
Trent Walker officer: Chief Financial Officer C/O PIMCO, 650 NEWPORT CENTER DRIVE, NEWPORT BEACH CA 92660
Kyle Mcclements other: Portfolio Manager 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
Joseph Wolfe other: Portfolio Manager 1 UNIVERSITY SQUARE DRIVE, PRINCETON NJ 08540
Christopher Accettella other: Portfolio Manager 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
Todd Burnside other: Portfolio Manager 55 EAST 52ND STREET, NEW YORK NY 10055
Frank Fabozzi director 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
Robert Glenn Hubbard director 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
Richard Cavanagh director 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
W Carl Kester director 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
Karen P Robards director 800 SCUDDERS MILL RD, PLAINSBORO NJ 08536

Blackrock Enhanced Cap&Inc Fund, (Blackrock Enhanced Cap&Inc Fund,) Headlines

From GuruFocus

Blackrock Enhanced Cap&Inc Fund, Inc's Dividend Analysis

By GuruFocus Research 10-13-2023