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AB (AllianceBernstein Holding LP) Forward Rate of Return (Yacktman) % : 12.66% (As of Sep. 2024)


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What is AllianceBernstein Holding LP Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. AllianceBernstein Holding LP's forward rate of return for was 12.66%.

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

AB' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 2.79   Med: 6.99   Max: 14.05
Current: 12.1

During the past 13 years, AllianceBernstein Holding LP's highest Forward Rate of Return was 14.05. The lowest was 2.79. And the median was 6.99.

AB's Forward Rate of Return (Yacktman) % is ranked better than
73.72% of 1214 companies
in the Asset Management industry
Industry Median: 5.465 vs AB: 12.10

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.


AllianceBernstein Holding LP Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for AllianceBernstein Holding LP'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.

AllianceBernstein Holding LP Forward Rate of Return (Yacktman) % Chart

AllianceBernstein Holding LP 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 6.38 6.67 5.97 9.68 12.92

AllianceBernstein Holding LP 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 12.69 12.92 12.23 12.65 12.66

Competitive Comparison of AllianceBernstein Holding LP's Forward Rate of Return (Yacktman) %

For the Asset Management subindustry, AllianceBernstein Holding LP'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.


AllianceBernstein Holding LP's Forward Rate of Return (Yacktman) % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, AllianceBernstein Holding LP's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



AllianceBernstein Holding LP 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).

AllianceBernstein Holding LP's Forward Rate of Return of Sep. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=3.02838095/34.89+0.0398
=12.66 %

* 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.


AllianceBernstein Holding LP  (NYSE:AB) 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 Book Value 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.


AllianceBernstein Holding LP Forward Rate of Return (Yacktman) % Related Terms

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


AllianceBernstein Holding LP Business Description

Traded in Other Exchanges
N/A
Address
501 Commerce Street, Nashville, TN, USA, 37203
AllianceBernstein provides investment management services to institutional (42% of assets under management), retail (41%), and private (17%) clients through products that includes mutual funds, hedge funds, and separately managed accounts. At the end of July 2024, AB had $777 billion in managed assets, composed primarily of fixed-income (37% of AUM) and equity (43%) strategies, with other investments (made up of asset allocation services and certain other alternative investments) accounting for the remainder.
Executives
Equitable Holdings, Inc. other: Filed by mult. reporting pers. 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Stonehill Charles G.t. director C/O EQUITABLE HOLDINGS, INC., 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Thomas Simeone officer: Chief Accounting Officer ALLIANCEBERNSTEIN, 501 COMMERCE STREET, NASHVILLE TN 37203
Kate C Burke officer: Head of Human Capital and CTO /CO ALLIANCEBERNSTEIN L.P., 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Joan M Lammtennant director 40 WANTAGE AVE, BRANCHVILLE NJ 07890
Karl Sprules officer: Head of Global Tech and Ops C/O ALLIANCEBERNSTEIN, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Mark R Manley officer: SVP/Acting GC of Gen. Partner C/O ALLIANCE CAPITAL, 1345 AVENUE OF AMERICAS, NEW YORK NY 10105
Onur Erzan officer: Head, Gl. Cl. Grp. & Pr. Wlth. C/O ALLIANCE BERNSTEIN L.P., 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Todd Walthall director C/O ALLIANCEBERNSTEIN, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Laurence E Cranch officer: General Counsel ALLIANCE CAPITAL MANAGEMENT L.P., 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Ali Dibadj officer: CFO and Head of Strategy C/O JANUS HENDERSON GROUP, 151 DETROIT STREET, DENVER CO 80206
Bertram L Scott director C/O BECTON DICKERSON & CO, 1 BECTON DR, FRANKLIN LAKES NJ 07417
James A Gingrich officer: Chief Operating Officer C/O ALLIANCEBERNSTEIN L.P., 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Seth P Bernstein director, officer: President and CEO C/O ALLIANCEBERNSTEIN HOLDING, L.P., 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Nella Domenici director C/O ALLIANCEBERNSTEIN, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105