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LPP (LPPSY) Forward Rate of Return (Yacktman) % : 23.94% (As of Jul. 2024)


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What is LPP Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. LPP's forward rate of return for was 23.94%.

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

LPPSY' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -2.57   Med: 20.85   Max: 24.25
Current: 23.86

During the past 13 years, LPP's highest Forward Rate of Return was 24.25. The lowest was -2.57. And the median was 20.85.

LPPSY's Forward Rate of Return (Yacktman) % is ranked better than
85.8% of 803 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 7.83 vs LPPSY: 23.86

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.


LPP Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for LPP'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.

LPP Forward Rate of Return (Yacktman) % Chart

LPP Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Jan20 Jan21 Jan22 Jan23
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.44 21.94 22.78 22.04 21.54

LPP Quarterly Data
Sep19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 22.51 22.95 22.99 23.14 23.94

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

For the Apparel Manufacturing subindustry, LPP'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.


LPP's Forward Rate of Return (Yacktman) % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, LPP's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



LPP 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).

LPP's Forward Rate of Return of Jul. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0.74761905/20.41+0.2
=23.66 %

* 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.


LPP  (OTCPK:LPPSY) 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.


LPP Forward Rate of Return (Yacktman) % Related Terms

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


LPP Business Description

Traded in Other Exchanges
Address
ul. Lakowa 39/44, Gdansk, POL, 80-769
LPP SA makes and sells clothing, footwear, bags, and accessories in Central and Eastern Europe. LPP has nearly 1,500 company-branded retail stores, which serve as the company's primary sales channel. Brands include Reserved, Cropp, House, Mohito, and Sinsay. Reserved stores account for roughly half of the company's sales volume. Geographically, most sales are in Poland, and Poland and Russia account for more than 80% of total sales. LPP purchases most of its materials in Asia, and the company's manufacturers are primarily located in China.

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