Estimating potential future returns The company rewards shareholders by paying some dividends, growing its book value and buying back its shares. Over the last 5 years, the total "fundamental" returns to shareholders is 12.27% compounded annually. If the company can repeat this performance going forward and price to book multiples remain unchanged, then shareholders would receive similar returns in the future. Currently the company is trading slightly below book value which provides further potential if this multiple re-rates higher.
Over the last 3 years total fundamental returns to shareholders is 13.77%
Fundamental returns attempts to eliminate changes to earnings multiples and focuses solely on earnings, dividends and share buybacks.