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Clipper Realty (Clipper Realty) Forward Rate of Return (Yacktman) % : 30.31% (As of Mar. 2024)


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What is Clipper Realty Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Clipper Realty's forward rate of return for was 30.31%.

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

CLPR' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 14.65   Med: 22.27   Max: 39.39
Current: 35.68

During the past 10 years, Clipper Realty's highest Forward Rate of Return was 39.39. The lowest was 14.65. And the median was 22.27.

CLPR's Forward Rate of Return (Yacktman) % is ranked better than
95.5% of 556 companies
in the REITs industry
Industry Median: 7.685 vs CLPR: 35.68

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.


Clipper Realty Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Clipper Realty'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.

Clipper Realty Forward Rate of Return (Yacktman) % Chart

Clipper Realty Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 25.59 14.70 23.51 25.94

Clipper Realty Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 26.60 26.13 26.90 25.94 30.31

Competitive Comparison of Clipper Realty's Forward Rate of Return (Yacktman) %

For the REIT - Residential subindustry, Clipper Realty'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.


Clipper Realty's Forward Rate of Return (Yacktman) % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Clipper Realty's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Clipper Realty 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).

Clipper Realty's Forward Rate of Return of Mar. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=1.1792381/4.83+0.059
=30.31 %

* 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.


Clipper Realty  (NYSE:CLPR) 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.


Clipper Realty Forward Rate of Return (Yacktman) % Related Terms

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


Clipper Realty (Clipper Realty) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Clipper Realty Inc (NYSE:CLPR) » Definitions » Forward Rate of Return (Yacktman) %
Traded in Other Exchanges
N/A
Address
4611 12th Avenue, Suite 1L, Brooklyn, NY, USA, 11219
Clipper Realty Inc is a self-administered and self-managed real estate company. It acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. It has classified its reporting segments into commercial and residential rental properties. Clipper derives its revenue mostly from a Residential segment.
Executives
Howard M Lorber director 4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Harmon Spolan director OOZEN O CONNOR, 1900 MARKET ST 4TH FL, PHILADELPHIA PA 19103
Sam Levinson director, 10 percent owner 9190 PRIORITY WAY WEST DRIVE, SUITE 300, INDIANAPOLIS IN 46240
David Bistricer director, 10 percent owner, officer: Co-Chairman and CEO PO BOX 407, BROOKLIN NY 11219
Michael Charles Frenz officer: Chief Financial Officer C/O CLIPPER REALTY INC, 4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Roberto Angelo Verrone director 200 HIGHLAND AVENUE, SHORT HILLS NJ 07078
Robert Jay Ivanhoe director GREENBERG TRAURIG, LLP, 200 PARK AVENUE, NEW YORK NY 10166
Richard N Burger director P.O. BOX 28543, SCOTTSDALE AZ 85255
Lawrence E Kreider officer: Chief Financial Officer 600 GRANT STREET, SUITE 900, DENVER CO 80203
Jacob Bistricer officer: Chief Operating Officer 4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Jacob Schwimmer officer: Chief PM Offcier 1738 47TH STREET, BROOKLYN NY 11204