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General Motors CoGM +0.44%77 Forward Rate of Return (Yacktman) % is 2.36% as of Jun. 2026. GuruFocus rates GM with a GF Score™ of 77/100 and a GF Value™ of $66.40 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 991 Vehicles & Parts companies, General Motors Co ranks worse than 65.09% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. General Motors Co's forward rate of return for was 2.36%.
The historical rank and industry rank for General Motors Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
GM'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -19.36 Med: -7.49 Max: 6.67
Current: 2.68
During the past 13 years, General Motors Co's highest Forward Rate of Return was 6.67. The lowest was -19.36. And the median was -7.49.
GM's Forward Rate of Return (Yacktman) % is ranked worse than 65.09% of 991
companies
in the Vehicles & Parts industry
Industry Median: 10.12
vs GM: 2.68
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.
General Motors Co (NYSE:GM) 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.
General Motors Co Forward Rate of Return (Yacktman) % Related Terms
General Motors Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for General Motors Co'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.
General Motors Co Forward Rate of Return (Yacktman) % Chart
GM vs F, RIVN, LI: Forward Rate of Return (Yacktman) % Comparison
For the Auto Manufacturers subindustry, General Motors Co'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.
General Motors Co Forward Rate of Return (Yacktman) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, General Motors Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where General Motors Co's Forward Rate of Return (Yacktman) % falls into.
General Motors Co 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).
* 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.
What does a Forward Rate of Return (Yacktman) % of 2.36% mean?
General Motors Co (GM) has a Forward Rate of Return (Yacktman) % of 2.36% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on General Motors Co and its competitors. According to the industry distribution chart, General Motors Co ranks #645 out of 991 companies in the Vehicles & Parts industry, placing it in the top 65.1%.
Is General Motors Co's Forward Rate of Return (Yacktman) % too high?
General Motors Co's current Forward Rate of Return (Yacktman) % is 2.36%. The Vehicles & Parts industry median Forward Rate of Return (Yacktman) % is 10.12. General Motors Co's value of 2.36% is 76.7% below this industry median. Based on the distribution chart, General Motors Co ranks #645 out of 991 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, General Motors Co has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does General Motors Co's Forward Rate of Return (Yacktman) % compare to F and RIVN?
According to the Vehicles & Parts industry distribution chart, General Motors Co ranks #645 out of 991 companies for Forward Rate of Return (Yacktman) %. This places General Motors Co in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 10.12. General Motors Co's value of 2.36% is 76.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Vehicles & Parts company?
The median Forward Rate of Return (Yacktman) % among Vehicles & Parts companies is 10.12, based on 991 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Motors Co's current Forward Rate of Return (Yacktman) % of 2.36% is 76.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on General Motors Co and its competitors. For the Vehicles & Parts industry, the median Forward Rate of Return (Yacktman) % is 10.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Motors Co's current Forward Rate of Return (Yacktman) % is 2.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Motors Co stock overvalued right now?
Based on GuruFocus' analysis, General Motors Co (GM) is currently considered Significantly Overvalued. The stock's GF Value™ is $66.40, compared to a current price of $86.77 — trading 30.7% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 2.36% and 76.7% below the Vehicles & Parts industry median of 10.12. General Motors Co's overall GF Score™ is 77/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For General Motors Co (GM), the current Forward Rate of Return (Yacktman) % is 2.36% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is General Motors Co (GM) Overvalued in 2026?
Based on GuruFocus' analysis, General Motors Co stock appears to be overvalued.
The current stock price of $86.77 is trading 30.7% above its estimated GF Value™ of $66.40.
GuruFocus considers General Motors Co to be Significantly Overvalued.
Key valuation signals for GM:
Forward Rate of Return (Yacktman) %: 2.36%
GF Value™: $66.40 vs. price of $86.77 (30.7% above fair value)
Industry Position: 76.7% below the Vehicles & Parts median (#645 of 991)
No single metric tells the full story. See the GM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under three segments: GM North America, GM International, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its US market share leadership in 2022, after losing it to Toyota due to the chip shortage in 2021. 2025 US share was 17.4%, up 60 basis points from 2024. The Cruise autonomous vehicle arm, which GM now owns outright, previously operated driverless geofenced AV robotaxi services in San Francisco and other cities, but after a 2023 accident, GM decided that it will focus on personal AVs. GM Financial became the company's captive finance arm in 2010 via the purchase of AmeriCredit.
77GF Score
Get the complete analysis for GM
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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