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CBRE (CBRE Group) Forward Rate of Return (Yacktman) % : 4.76% (As of Sep. 2024)


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What is CBRE Group Forward Rate of Return (Yacktman) %?

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. CBRE Group's forward rate of return for was 4.76%.

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

CBRE' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 2.83   Med: 15.7   Max: 23.82
Current: 4.58

During the past 13 years, CBRE Group's highest Forward Rate of Return was 23.82. The lowest was 2.83. And the median was 15.70.

CBRE's Forward Rate of Return (Yacktman) % is ranked worse than
50.97% of 1285 companies
in the Real Estate industry
Industry Median: 5.3 vs CBRE: 4.58

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.


CBRE Group Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for CBRE Group'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.

CBRE Group Forward Rate of Return (Yacktman) % Chart

CBRE Group 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 15.10 10.93 8.58 8.47 3.63

CBRE Group 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 4.48 3.63 3.46 4.77 4.76

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

For the Real Estate Services subindustry, CBRE Group'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.


CBRE Group's Forward Rate of Return (Yacktman) % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, CBRE Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



CBRE Group 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).

CBRE Group's Forward Rate of Return of Sep. 2024 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=3.87142857/124.48+0.0165
=4.76 %

* 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.


CBRE Group  (NYSE:CBRE) 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.


CBRE Group Forward Rate of Return (Yacktman) % Related Terms

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


CBRE Group Business Description

Industry
Traded in Other Exchanges
Address
2100 McKinney Avenue, Suite 1250, Dallas, TX, USA, 75201
CBRE Group provides a wide range of real estate services to owners, occupants, and investors worldwide, including leasing, property and project management, and capital markets advisory. Additionally, CBRE's investment management arm manages over $140 billion for clients across diverse public and private real estate strategies.
Executives
Daniel G Queenan officer: CEO, Real Estate Investments C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Oscar Munoz director
Christopher T Jenny director MAC-GRAY CORPORATION, 22 WATER STREET, CAMBRIDGE MA 02141
Vikramaditya Kohli officer: See Remarks 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Emma E. Giamartino officer: See Remarks 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Lindsey S Caplan officer: Chief Accounting Officer 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
John E Durburg officer: Chief Operating Officer C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Chandra Dhandapani officer: Chief Digital & Tech. Officer C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Brandon Boze director ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Hutcheson Edward Mcvicar Blake director 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
J. Christopher Kirk officer: EVP, Chief Admin. Officer C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Susan Meaney director 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Robert E Sulentic director, officer: Group President C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Michael J Lafitte officer: President, Americas C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Laurence H Midler officer: EVP & Secretary C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201