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Fletcher BuildingASX:FBU +0.91%59 Forward Rate of Return (Yacktman) % is -24.54% as of Jun. 2026. GuruFocus rates ASX:FBU with a GF Score™ of 59/100 and a GF Value™ of A$1.98 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 319 Building Materials companies, Fletcher Building ranks worse than 89.34% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Fletcher Building's forward rate of return for was -24.54%.
The historical rank and industry rank for Fletcher Building's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ASX:FBU'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -25.65 Med: -3.45 Max: 26.27
Current: -25.52
During the past 13 years, Fletcher Building's highest Forward Rate of Return was 26.27. The lowest was -25.65. And the median was -3.45.
ASX:FBU's Forward Rate of Return (Yacktman) % is ranked worse than 89.34% of 319
companies
in the Building Materials industry
Industry Median: 8.07
vs ASX:FBU: -25.52
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.
Fletcher Building (ASX:FBU) 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.
Fletcher Building Forward Rate of Return (Yacktman) % Related Terms
Fletcher Building Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Fletcher Building'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.
Fletcher Building Forward Rate of Return (Yacktman) % Chart
ASX:FBU vs CRH, VMC, MLM: Forward Rate of Return (Yacktman) % Comparison
For the Building Materials subindustry, Fletcher Building'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.
Fletcher Building Forward Rate of Return (Yacktman) % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Fletcher Building's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Fletcher Building's Forward Rate of Return (Yacktman) % falls into.
Fletcher Building 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 -24.54% mean?
Fletcher Building (ASX:FBU) has a Forward Rate of Return (Yacktman) % of -24.54% 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 Fletcher Building and its competitors. According to the industry distribution chart, Fletcher Building ranks #285 out of 319 companies in the Building Materials industry, placing it in the top 89.3%.
Is Fletcher Building's Forward Rate of Return (Yacktman) % too high?
Fletcher Building's current Forward Rate of Return (Yacktman) % is -24.54%. Based on the distribution chart, Fletcher Building ranks #285 out of 319 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Fletcher Building has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fletcher Building's Forward Rate of Return (Yacktman) % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Fletcher Building ranks #285 out of 319 companies for Forward Rate of Return (Yacktman) %. This places Fletcher Building in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.07. 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 Building Materials company?
The median Forward Rate of Return (Yacktman) % among Building Materials companies is 8.07, based on 319 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. 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 Fletcher Building and its competitors. For the Building Materials industry, the median Forward Rate of Return (Yacktman) % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fletcher Building's current Forward Rate of Return (Yacktman) % is -24.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fletcher Building stock overvalued right now?
Based on GuruFocus' analysis, Fletcher Building (ASX:FBU) is currently considered Significantly Overvalued. The stock's GF Value™ is A$1.98, compared to a current price of A$3.31 — trading 67.2% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is -24.54%. Fletcher Building's overall GF Score™ is 59/100 with 8 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 Fletcher Building (ASX:FBU), the current Forward Rate of Return (Yacktman) % is -24.54% 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 Fletcher Building (ASX:FBU) Overvalued in 2026?
Based on GuruFocus' analysis, Fletcher Building stock appears to be overvalued.
The current stock price of A$3.31 is trading 67.2% above its estimated GF Value™ of A$1.98.
GuruFocus considers Fletcher Building to be Significantly Overvalued.
Key valuation signals for ASX:FBU:
Forward Rate of Return (Yacktman) %: -24.54%
GF Value™: A$1.98 vs. price of A$3.31 (67.2% above fair value)
No single metric tells the full story. See the ASX:FBU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fletcher Building is a New Zealand-based building materials company with operations focused in New Zealand, but also extending to Australia. It has a conglomerate structure with diverse operations across concrete, building products, steel, retail distribution, and development. Most revenue is derived from new house construction, with smaller earnings contributions from commercial and infrastructure construction.
59GF Score
Get the complete analysis for ASX:FBU
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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