D.E. Master Blenders 1753 N.V. (XAMS:DE) Forward Rate of Return (Yacktman) % : 0.00% (As of Jun. 2012)

View and export this data going back to . Start your Free Trial

What is D.E. Master Blenders 1753 N.V. Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. D.E. Master Blenders 1753 N.V.'s forward rate of return for was 0.00%.

The historical rank and industry rank for D.E. Master Blenders 1753 N.V.'s Forward Rate of Return (Yacktman) % or its related term are showing as below:

XAMS:DE's Forward Rate of Return (Yacktman) % is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 7.595
* 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 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.

D.E. Master Blenders 1753 N.V. Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for D.E. Master Blenders 1753 N.V.'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.

D.E. Master Blenders 1753 N.V. Forward Rate of Return (Yacktman) % Chart

D.E. Master Blenders 1753 N.V. Annual Data

Trend

Jun11

Jun12

Forward Rate of Return (Yacktman) %

D.E. Master Blenders 1753 N.V. Semi-Annual Data
	Jun11	Jun12
Forward Rate of Return (Yacktman) %	-	-

Competitive Comparison of D.E. Master Blenders 1753 N.V.'s Forward Rate of Return (Yacktman) %

For the Packaged Foods subindustry, D.E. Master Blenders 1753 N.V.'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.

D.E. Master Blenders 1753 N.V.'s Forward Rate of Return (Yacktman) % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, D.E. Master Blenders 1753 N.V.'s Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where D.E. Master Blenders 1753 N.V.'s Forward Rate of Return (Yacktman) % falls into.

D.E. Master Blenders 1753 N.V. 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).

D.E. Master Blenders 1753 N.V.'s Forward Rate of Return of Jun. 2012 is

Forward Rate of Return	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0	/	8.91	+	0
	=	0.00 %

D.E. Master Blenders 1753 N.V. (XAMS:DE) 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.

D.E. Master Blenders 1753 N.V. Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of D.E. Master Blenders 1753 N.V.'s Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.

D.E. Master Blenders 1753 N.V. (XAMS:DE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » D.E. Master Blenders 1753 N.V. (XAMS:DE) » Definitions » Forward Rate of Return (Yacktman) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.demasterblenders1753.com

D E Master Blenders 1753 NV was incorporated on February 27, 2012 as a private company with limited liability. On April 4, 2012, it changed its name to D.E MASTER BLENDERS 1753 B.V. and moved its corporate seat to Joure (SkasterlÃ¢n), the Netherlands. The Company is a pure-play coffee and tea company that offers high-quality, coffee and tea products that are known in retail and out of home markets across Europe, Brazil, Australia and Thailand. It has a portfolio of coffee and tea brands that address the needs of both its retail and out of home customers in its markets. The Company's segments are Retail-Western Europe, Retail-Rest of World and Out of Home. In Retail-Western Europe and Retail-Rest of World segments, its principal products are multi-serve coffee, single-serve coffee pads and capsules, instant coffee and tea. It sells these products predominantly to supermarkets, hypermarkets and through international buying groups. In its Out of Home segment, it offers hot beverage products but focus on its liquid roast products and related coffee machines. Its products and the related machines in the Out of Home segment are sold either directly to businesses, hotels, hospitals and restaurants or to foodservice distributors for distribution to the customer. Douwe Egberts is the Company's established brand in the multi-serve category and coffee brand in the Netherlands and Belgium and also has solid market positions in the United Kingdom and Hungary. In addition to Douwe Egberts, its multi-serve coffee is sold under the following brands: L'OR and Maison du CafÃ© in France, Marcilla in Spain,Merrild in Denmark, Harris in Australia, Kanis & Gunnink in the Netherlands, Jacqmotte in Belgium, Prima in Poland, and PilÃ£o, Caboclo, Damasco and Moka in Brazil. Its single-serve coffee is sold under the brand name Senseo which is generally co-branded, such as Douwe Egberts Senseo and L'OR Senseo, in the Netherlands, Belgium, France, Germany, and Spain and selected other countries. In April 2010, it launched the L'OR EspressO capsules brand in France, and L'OR EspressO has subsequently been successfully launched in the Netherlands and Belgium. In May 2011, it successfully launched its capsules brand in Spain as L'aRÃ´me EspressO. The Company's instant coffee is sold under the Moccona brand in Australia and Thailand, under the Douwe Egberts brand in the United Kingdom and under local brands in certain of its markets. Its tea is sold under the brand names Pickwick in the Netherlands, Belgium, the Czech Republic, Hungary and Denmark and Hornimans in Spain. The Out of Home segment operates under the Cafitesse umbrella brand, which is principally co-branded Douwe Egberts Cafitesse, for its liquid roast coffee products and machines and under its Piazza D'Oro brand for premium espresso products and machines. The Company competes with other large international and national coffee and tea companies as well as smaller regional and specialty coffee and te