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Australian Finance GroupASX:AFG +2.52%49 Forward Rate of Return (Yacktman) % is 8.65% as of Jun. 2025, which is 54% below its 10-year median of 18.66. GuruFocus rates ASX:AFG with a GF Score™ of 49/100 and a GF Value™ of A$2.96 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,418 Banks companies, Australian Finance Group ranks worse than 67.7% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Australian Finance Group's forward rate of return for was 8.65%.
The historical rank and industry rank for Australian Finance Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ASX:AFG'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 7.53 Med: 18.66 Max: 23.42
Current: 11.38
During the past 11 years, Australian Finance Group's highest Forward Rate of Return was 23.42. The lowest was 7.53. And the median was 18.66.
ASX:AFG's Forward Rate of Return (Yacktman) % is ranked worse than 67.7% of 1418
companies
in the Banks industry
Industry Median: 15.34
vs ASX:AFG: 11.38
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.
Australian Finance Group (ASX:AFG) 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 Book Value 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.
Australian Finance Group Forward Rate of Return (Yacktman) % Related Terms
Australian Finance Group Forward Rate of Return (Yacktman) % Historical Data
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The historical data trend for Australian Finance Group'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.
Australian Finance Group Forward Rate of Return (Yacktman) % Chart
ASX:AFG vs RKT, FNMA, PFSI: Forward Rate of Return (Yacktman) % Comparison
For the Mortgage Finance subindustry, Australian Finance Group'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.
Australian Finance Group Forward Rate of Return (Yacktman) % vs Banks Industry
For the Banks industry and Financial Services sector, Australian Finance Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Australian Finance Group's Forward Rate of Return (Yacktman) % falls into.
Australian Finance Group 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 8.65% mean?
Australian Finance Group (ASX:AFG) has a Forward Rate of Return (Yacktman) % of 8.65% 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 Australian Finance Group and its competitors. This is 54% below median its historical median of 18.66. Over the past decade, Australian Finance Group's Forward Rate of Return (Yacktman) % has ranged from 7.53 to 23.42. According to the industry distribution chart, Australian Finance Group ranks #960 out of 1418 companies in the Banks industry, placing it in the top 67.7%.
Is Australian Finance Group's Forward Rate of Return (Yacktman) % too high?
Australian Finance Group's current Forward Rate of Return (Yacktman) % of 8.65% is 54% below median its 10-year median of 18.66. Over the past 10 years, this metric has ranged from a low of 7.53 to a high of 23.42. The Banks industry median Forward Rate of Return (Yacktman) % is 15.34. Australian Finance Group's value of 8.65% is 43.6% below this industry median. Based on the distribution chart, Australian Finance Group ranks #960 out of 1418 companies in the Banks industry, which is below the industry midpoint. Overall, Australian Finance Group has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Australian Finance Group's Forward Rate of Return (Yacktman) % compare to RKT and FNMA?
According to the Banks industry distribution chart, Australian Finance Group ranks #960 out of 1418 companies for Forward Rate of Return (Yacktman) %. This places Australian Finance Group in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 15.34. Australian Finance Group's value of 8.65% is 43.6% below this benchmark. Historically, Australian Finance Group's own Forward Rate of Return (Yacktman) % has ranged from 7.53 to 23.42 over the past decade. While the company's 10-year median is 18.66 vs. the industry median of 15.34, Australian Finance Group 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 Banks company?
The median Forward Rate of Return (Yacktman) % among Banks companies is 15.34, based on 1,418 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. Australian Finance Group's current Forward Rate of Return (Yacktman) % of 8.65% is 43.6% 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 Australian Finance Group and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Finance Group's current Forward Rate of Return (Yacktman) % is 8.65%, which is 54% below median its own 10-year median of 18.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Finance Group stock overvalued right now?
Based on GuruFocus' analysis, Australian Finance Group (ASX:AFG) is currently considered Significantly Undervalued. The stock's GF Value™ is A$2.96, compared to a current price of A$1.63 — trading 44.9% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 8.65%, which is 54% below median its 10-year median of 18.66 and 43.6% below the Banks industry median of 15.34. Australian Finance Group's overall GF Score™ is 49/100 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 Australian Finance Group (ASX:AFG), the current Forward Rate of Return (Yacktman) % is 8.65% 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 Australian Finance Group (ASX:AFG) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Finance Group stock appears to be undervalued.
The current stock price of A$1.63 is trading 44.9% below its estimated GF Value™ of A$2.96.
GuruFocus considers Australian Finance Group to be Significantly Undervalued.
Key valuation signals for ASX:AFG:
Forward Rate of Return (Yacktman) %: 8.65% (54% below median its 10-year median of 18.66)
GF Value™: A$2.96 vs. price of A$1.63 (44.9% below fair value)
Industry Position: 43.6% below the Banks median (#960 of 1418)
No single metric tells the full story. See the ASX:AFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Finance Group Ltd is engaged in mortgage origination and management of home loans and commercial loans. It also distributes its own branded home loan products including traditional mortgage management products, white label. The company's segment includes Distribution, Manufacturing and Central. It generates maximum revenue from the Distribution segment.
49GF Score
Get the complete analysis for ASX:AFG
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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