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CNA (CNA Financial) Forward Rate of Return (Yacktman) % : 26.00% (As of Sep. 2024)


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What is CNA Financial Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. CNA Financial's forward rate of return for was 26.00%.

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

CNA' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.63   Med: 12.03   Max: 26.46
Current: 26.03

During the past 13 years, CNA Financial's highest Forward Rate of Return was 26.46. The lowest was 3.63. And the median was 12.03.

CNA's Forward Rate of Return (Yacktman) % is ranked better than
74.24% of 264 companies
in the Insurance industry
Industry Median: 16.59 vs CNA: 26.03

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.


CNA Financial Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for CNA Financial'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.

CNA Financial Forward Rate of Return (Yacktman) % Chart

CNA Financial 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 14.66 13.55 7.63 12.20 20.73

CNA Financial Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 18.19 20.73 21.67 24.08 26.00

Competitive Comparison of CNA Financial's Forward Rate of Return (Yacktman) %

For the Insurance - Property & Casualty subindustry, CNA Financial'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.


CNA Financial's Forward Rate of Return (Yacktman) % Distribution in the Insurance Industry

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

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



CNA Financial 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).

CNA Financial's Forward Rate of Return of Sep. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=7.54514286/48.94+0.1058
=26.00 %

* 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.


CNA Financial  (NYSE:CNA) 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.


CNA Financial Forward Rate of Return (Yacktman) % Related Terms

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


CNA Financial Business Description

Industry
Traded in Other Exchanges
Address
151 N. Franklin Street, Chicago, IL, USA, 60606
CNA Financial Corporation (CNAF) is an insurance holding company that provides commercial property and casualty insurance. The company operates under five segments: Specialty, Commercial and International being its core business and two segments for its non-core businesses, which are Life and Group and Corporate and Other. CNAF, through its segments, provides professional, financial, specialty property and casualty products to small businesses and medium scale organizations. It has its business spread across Continental Europe, United Kingdom, and Canada. The majority of the revenues are generated from the Specialty and Commercial segment of the business.
Executives
Douglas Worman officer: EVP & Chief Underwriting Off 151 N. FRANKLIN, CHICAGO IL 60606
Mark Steven James officer: EVP, Chief Risk & Rein Off 151 N. FRANKLIN STREET, CHICAGO IL 60606
Elizabeth Ann Aguinaga officer: EVP, Chief HR Officer 151 N. FRANKLIN, CHICAGO IL 60606
Jane Elizabeth Possell officer: EVP & CIO 151 N. FRANKLIN ST., CHICAGO IL 60606
Susan Ann Stone officer: EVP & General Counsel 151 N. FRANKLIN ST., CHICAGO IL 60606
Daniel Paul Franzetti officer: EVP, Claims 151 N. FRANKLIN ST., CHICAGO IL 60606
Loews Corp 10 percent owner 9 WEST 57TH STREET, NEW YORK NY 10019-2714
Michael A Bless director C/O ROCKWELL INTERNATIONAL INC, 777 E. WISCONSIN AVE #1400, MILWAUKEE WI 53202
Scott R Lindquist officer: EVP & CFO 151 N. FRANKLIN STREET, CHICAGO IL 60606
Amy Marie Smith officer: SVP & CAO 151 N. FRANKLIN STREET, CHICAGO IL 60606
Gary Haase officer: EVP & COO 151 N. FRANKLIN ST., CHICAGO IL 60606
Dino Robusto director, officer: Chairman & CEO 151 N. FRANKLIN, CHICAGO IL 60606
Nick Creatura officer: President & CEO for Canada 66 WELLINGTON STREET WEST, SUITE 3700, TORONTO A6 M5K 1J5
Jalil Rehman officer: Pres. & CEO for UK and Europe 20 FENCHURCH STREET, LONDON X0 EC3M 3BY
Robert Joseph Hopper officer: EVP, Actuary 151 N. FRANKLIN ST., CHICAGO IL 60606