Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ABM IndustriesABM -1.21%83 Forward Rate of Return (Yacktman) % is 10.39% as of Apr. 2026, which is 38% below its 10-year median of 16.70. GuruFocus rates ABM with a GF Scoreâ„¢ of 83/100 and a GF Valueâ„¢ of $54.48 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 724 Business Services companies, ABM Industries ranks worse than 60.91% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. ABM Industries's forward rate of return for was 10.39%.
The historical rank and industry rank for ABM Industries's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ABM'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -3.43 Med: 16.7 Max: 27.56
Current: 9.67
During the past 13 years, ABM Industries's highest Forward Rate of Return was 27.56. The lowest was -3.43. And the median was 16.70.
ABM's Forward Rate of Return (Yacktman) % is ranked worse than 60.91% of 724
companies
in the Business Services industry
Industry Median: 13.3
vs ABM: 9.67
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.
ABM Industries (NYSE:ABM) 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.
ABM Industries Forward Rate of Return (Yacktman) % Related Terms
ABM Industries Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for ABM Industries'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.
ABM Industries Forward Rate of Return (Yacktman) % Chart
ABM vs CBZ, MMS, CMPR: Forward Rate of Return (Yacktman) % Comparison
For the Specialty Business Services subindustry, ABM Industries'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.
ABM Industries Forward Rate of Return (Yacktman) % vs Business Services Industry
For the Business Services industry and Industrials sector, ABM Industries's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where ABM Industries's Forward Rate of Return (Yacktman) % falls into.
ABM Industries 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 10.39% mean?
ABM Industries (ABM) has a Forward Rate of Return (Yacktman) % of 10.39% as of Apr. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on ABM Industries and its competitors. This is 38% below median its historical median of 16.70. According to the industry distribution chart, ABM Industries ranks #441 out of 724 companies in the Business Services industry, placing it in the top 60.9%.
Is ABM Industries' Forward Rate of Return (Yacktman) % too high?
ABM Industries' current Forward Rate of Return (Yacktman) % of 10.39% is 38% below median its 10-year median of 16.70. The Business Services industry median Forward Rate of Return (Yacktman) % is 13.30. ABM Industries' value of 10.39% is 21.9% below this industry median. Based on the distribution chart, ABM Industries ranks #441 out of 724 companies in the Business Services industry, which is below the industry midpoint. Overall, ABM Industries has a GF Scoreâ„¢ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ABM Industries' Forward Rate of Return (Yacktman) % compare to CBZ and MMS?
According to the Business Services industry distribution chart, ABM Industries ranks #441 out of 724 companies for Forward Rate of Return (Yacktman) %. This places ABM Industries in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 13.30. ABM Industries' value of 10.39% is 21.9% below this benchmark. While the company's 10-year median is 16.70 vs. the industry median of 13.30, ABM Industries has consistently been below the industry average. 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 Business Services company?
The median Forward Rate of Return (Yacktman) % among Business Services companies is 13.30, based on 724 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. ABM Industries's current Forward Rate of Return (Yacktman) % of 10.39% is 21.9% 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 ABM Industries and its competitors. For the Business Services industry, the median Forward Rate of Return (Yacktman) % is 13.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABM Industries's current Forward Rate of Return (Yacktman) % is 10.39%, which is 38% below median its own 10-year median of 16.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABM Industries stock overvalued right now?
Based on GuruFocus' analysis, ABM Industries (ABM) is currently considered Modestly Undervalued. The stock's GF Value™ is $54.48, compared to a current price of $46.63 — trading 14.4% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 10.39%, which is 38% below median its 10-year median of 16.70 and 21.9% below the Business Services industry median of 13.30. ABM Industries' overall GF Score™ is 83/100 with 5 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 ABM Industries (ABM), the current Forward Rate of Return (Yacktman) % is 10.39% as of Apr. 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 ABM Industries (ABM) Overvalued in 2026?
Based on GuruFocus' analysis, ABM Industries stock appears to be undervalued.
The current stock price of $46.63 is trading 14.4% below its estimated GF Value™ of $54.48.
GuruFocus considers ABM Industries to be Modestly Undervalued.
Key valuation signals for ABM:
Forward Rate of Return (Yacktman) %: 10.39% (38% below median its 10-year median of 16.70)
GF Value™: $54.48 vs. price of $46.63 (14.4% below fair value)
Industry Position: 21.9% below the Business Services median (#441 of 724)
No single metric tells the full story. See the ABM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ABM Industries Inc is a provider of integrated facility solutions. It offers its solutions through five segments: Business and Industry, Manufacturing and Distribution, Education, Aviation and Technical solutions. The company derives the majority of its revenue from the business and industry segment, which encompasses janitorial, facilities engineering, and parking services for commercial real estate properties and sports and entertainment venues, hospitals, as well as vehicle maintenance and other services to rental car providers. The company mainly operates in the United States of America.
83GF Score
Get the complete analysis for ABM
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ABM has been successfully added to your 
