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The a2 Milk CoACOPF 88 Forward Rate of Return (Yacktman) % is 2.65% as of Jun. 2025, which is 87% below its 10-year median of 20.06. GuruFocus rates ACOPF with a GF Scoreâ„¢ of 88/100 and a GF Valueâ„¢ of $4.92 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,397 Consumer Packaged Goods companies, The a2 Milk Co ranks worse than 63.49% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. The a2 Milk Co's forward rate of return for was 2.65%.
The historical rank and industry rank for The a2 Milk Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ACOPF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -8.76 Med: 20.06 Max: 25.48
Current: 3.25
During the past 13 years, The a2 Milk Co's highest Forward Rate of Return was 25.48. The lowest was -8.76. And the median was 20.06.
ACOPF's Forward Rate of Return (Yacktman) % is ranked worse than 63.49% of 1397
companies
in the Consumer Packaged Goods industry
Industry Median: 8.45
vs ACOPF: 3.25
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.
The a2 Milk Co (OTCPK:ACOPF) 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.
The a2 Milk Co Forward Rate of Return (Yacktman) % Related Terms
The a2 Milk Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for The a2 Milk 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.
The a2 Milk Co Forward Rate of Return (Yacktman) % Chart
ACOPF vs KHC, GIS: Forward Rate of Return (Yacktman) % Comparison
For the Packaged Foods subindustry, The a2 Milk 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.
The a2 Milk Co Forward Rate of Return (Yacktman) % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's Forward Rate of Return (Yacktman) % falls into.
The a2 Milk 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 2.65% mean?
The a2 Milk Co (ACOPF) has a Forward Rate of Return (Yacktman) % of 2.65% as of Jun. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on The a2 Milk Co and its competitors. This is 87% below median its historical median of 20.06. According to the industry distribution chart, The a2 Milk Co ranks #887 out of 1397 companies in the Consumer Packaged Goods industry, placing it in the top 63.5%.
Is The a2 Milk Co's Forward Rate of Return (Yacktman) % too high?
The a2 Milk Co's current Forward Rate of Return (Yacktman) % of 2.65% is 87% below median its 10-year median of 20.06. The Consumer Packaged Goods industry median Forward Rate of Return (Yacktman) % is 8.45. The a2 Milk Co's value of 2.65% is 68.6% below this industry median. Based on the distribution chart, The a2 Milk Co ranks #887 out of 1397 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, The a2 Milk Co has a GF Scoreâ„¢ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's Forward Rate of Return (Yacktman) % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #887 out of 1397 companies for Forward Rate of Return (Yacktman) %. This places The a2 Milk Co in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.45. The a2 Milk Co's value of 2.65% is 68.6% below this benchmark. While the company's 10-year median is 20.06 vs. the industry median of 8.45, The a2 Milk Co 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 Consumer Packaged Goods company?
The median Forward Rate of Return (Yacktman) % among Consumer Packaged Goods companies is 8.45, based on 1,397 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. The a2 Milk Co's current Forward Rate of Return (Yacktman) % of 2.65% is 68.6% 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 The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median Forward Rate of Return (Yacktman) % is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current Forward Rate of Return (Yacktman) % is 2.65%, which is 87% below median its own 10-year median of 20.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The a2 Milk Co stock overvalued right now?
Based on GuruFocus' analysis, The a2 Milk Co (ACOPF) is currently considered Fairly Valued. The stock's GF Value™ is $4.92, compared to a current price of $4.95 — trading 0.6% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 2.65%, which is 87% below median its 10-year median of 20.06 and 68.6% below the Consumer Packaged Goods industry median of 8.45. The a2 Milk Co's overall GF Score™ is 88/100 with 3 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 The a2 Milk Co (ACOPF), the current Forward Rate of Return (Yacktman) % is 2.65% as of Jun. 2025. 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 The a2 Milk Co (ACOPF) Overvalued in 2026?
Based on GuruFocus' analysis, The a2 Milk Co stock appears to be overvalued.
The current stock price of $4.95 is trading 0.6% above its estimated GF Value™ of $4.92.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for ACOPF:
Forward Rate of Return (Yacktman) %: 2.65% (87% below median its 10-year median of 20.06)
GF Value™: $4.92 vs. price of $4.95 (0.6% above fair value)
Industry Position: 68.6% below the Consumer Packaged Goods median (#887 of 1397)
No single metric tells the full story. See the ACOPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
88GF Score
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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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