Hoteles City ExpressB de CV (MEX:HCITY) Forward Rate of Return (Yacktman) %: 0.00% (As of Jun. 2023)

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

MEX:HCITY Hoteles City Express SAB de CV MEX:HCITY
8 GF Score
Price MXN5.70
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What is Hoteles City ExpressB de CV Forward Rate of Return (Yacktman) %?

Hoteles City ExpressB de CV MEX:HCITY -0.87% 8 Forward Rate of Return (Yacktman) % is 0.00% as of Jun. 2023. GuruFocus rates MEX:HCITY with a GF Score™ of 8/100.

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Hoteles City ExpressB de CV's forward rate of return for was 0.00%.

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

MEX:HCITY's Forward Rate of Return (Yacktman) % is not ranked *
in the Travel & Leisure industry.
Industry Median: 10.4
* 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.


Hoteles City ExpressB de CV  (MEX:HCITY) 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.


Hoteles City ExpressB de CV Forward Rate of Return (Yacktman) % Related Terms


Hoteles City ExpressB de CV Forward Rate of Return (Yacktman) % Historical Data

* Premium members only.

The historical data trend for Hoteles City ExpressB de CV'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.

Hoteles City ExpressB de CV Forward Rate of Return (Yacktman) % Chart

Hoteles City ExpressB de CV Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.60 -5.67 0.00 0.00 0.00

Hoteles City ExpressB de CV Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 0.00 0.00 0.00 0.00 0.00

MEX:HCITY vs MAR, HLT, HTHT: Forward Rate of Return (Yacktman) % Comparison

For the Lodging subindustry, Hoteles City ExpressB de CV'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.


Hoteles City ExpressB de CV Forward Rate of Return (Yacktman) % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hoteles City ExpressB de CV's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Hoteles City ExpressB de CV's Forward Rate of Return (Yacktman) % falls into.


MEX:HCITY
8GF Score
Hoteles City Express SAB de CV MEX:HCITY
Forward Rate of Return (Yacktman) % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hoteles City ExpressB de CV 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).

Hoteles City ExpressB de CV's Forward Rate of Return of Jun. 2023 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=-2.44838095/7.2+0.0112
=-32.89 %

* 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.

What does a Forward Rate of Return (Yacktman) % of 0.00% mean?
Hoteles City ExpressB de CV (MEX:HCITY) has a Forward Rate of Return (Yacktman) % of 0.00% as of Jun. 2023. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Hoteles City ExpressB de CV and its competitors.
Is Hoteles City ExpressB de CV's Forward Rate of Return (Yacktman) % too high?
Hoteles City ExpressB de CV's current Forward Rate of Return (Yacktman) % is 0.00%. Overall, Hoteles City ExpressB de CV has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Hoteles City ExpressB de CV's Forward Rate of Return (Yacktman) % compare to MAR and HLT?
Hoteles City ExpressB de CV's Forward Rate of Return (Yacktman) % of 0.00% can be compared against companies in the Travel & Leisure industry. The industry median Forward Rate of Return (Yacktman) % is 10.40. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Travel & Leisure company?
The median Forward Rate of Return (Yacktman) % among Travel & Leisure companies is 10.40, based on 565 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Hoteles City ExpressB de CV and its competitors. For the Travel & Leisure industry, the median Forward Rate of Return (Yacktman) % is 10.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoteles City ExpressB de CV's current Forward Rate of Return (Yacktman) % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoteles City ExpressB de CV stock overvalued right now?
Hoteles City ExpressB de CV (MEX:HCITY) has a current Forward Rate of Return (Yacktman) % of 0.00%. The current Forward Rate of Return (Yacktman) % is 0.00%. Hoteles City ExpressB de CV's overall GF Score™ is 8/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Hoteles City ExpressB de CV (MEX:HCITY), the current Forward Rate of Return (Yacktman) % is 0.00% as of Jun. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Hoteles City ExpressB de CV Business Description

Address Juan Salvador Agraz No. 69, Col. Santa Fe Cuajimalpa, Del. Cuajimalpa de Morelos, Mexico, MEX, 05348
Hoteles City Express SAB de CV together with its subsidiaries is engaged in the ownership, operation, and management of hotels using the brand names Hoteles City Express, City Suites and City Junior. The company's segments include Hotel Operation and Hotel Management. The company works as an alternative for business travelers, and the option for anyone looking to increase the value of an investment through a modern, hotel franchise and also, are the working towards the economy business travel segment.
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MXN5.70
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