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Differ Group Auto (HKSE:06878) Forward Rate of Return (Yacktman) % : 0.00% (As of Dec. 2022)


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

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Differ Group Auto's forward rate of return for was 0.00%.

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

HKSE:06878' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 9.56   Med: 16.61   Max: 242.47
Current: 242.47

During the past 11 years, Differ Group Auto's highest Forward Rate of Return was 242.47. The lowest was 9.56. And the median was 16.61.

HKSE:06878's Forward Rate of Return (Yacktman) % is ranked better than
99.46% of 370 companies
in the Credit Services industry
Industry Median: 5.545 vs HKSE:06878: 242.47

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.


Differ Group Auto Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Differ Group Auto'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.

Differ Group Auto Forward Rate of Return (Yacktman) % Chart

Differ Group Auto 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 20.35 21.41 11.73 9.48 -

Differ Group Auto Semi-Annual Data
Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 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 - 9.48 - - -

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

For the Credit Services subindustry, Differ Group Auto'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.


Differ Group Auto's Forward Rate of Return (Yacktman) % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Differ Group Auto's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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



Differ Group Auto 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).

Differ Group Auto's Forward Rate of Return of Dec. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0.2645/14.8+0.084
=10.19 %

* 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.


Differ Group Auto  (HKSE:06878) 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.


Differ Group Auto Forward Rate of Return (Yacktman) % Related Terms

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


Differ Group Auto (HKSE:06878) Business Description

Traded in Other Exchanges
N/A
Address
No. 503 Gaolin Middle Road, 33th Floor, Differ Fortune Centre, Huli District, Fujian Province, Xiamen, CHN
Differ Group Auto Ltd, formerly Differ Group Holding Co Ltd provides finance leases to corporate customers, which are mainly small and medium enterprises, incorporated and operating in Mainland China. The reportable segments of the Group are, Financial services segment includes the provision of guarantee services, express loan services, consultancy services, finance lease services, financial securities services, and assets management in the PRC and Hong Kong; Property development and investment segment includes property development projects and property investment activities in the PRC; Trading of commodities segment includes trading of commodities in the PRC; and Automobile e-commerce includes online e-commerce platform in the automobile industry in the PRC.
Executives
Expert Corporate Limited
Hong Mingxian
Shi Hongjiao
Tianjin Binhai Rural Commercial Bank Corporation 2106 Person having a security interest in shares
Ng Chi Chung 2201 Interest of corporation controlled by you
Ting Pui Shan 2202 Interest of your spouse
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you
Ever Ultimate Limited 2101 Beneficial owner
Huatai Securities Co., Ltd. 2201 Interest of corporation controlled by you

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