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GWA GroupASX:GWA +0.50%79 Forward Rate of Return (Yacktman) % is 12.60% as of Jun. 2026, which is 34% above its 10-year median of 9.43. GuruFocus rates ASX:GWA with a GF Score™ of 79/100 and a GF Value™ of A$2.47 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,305 Construction companies, GWA Group ranks better than 60.31% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. GWA Group's forward rate of return for was 12.60%.
The historical rank and industry rank for GWA Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ASX:GWA'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -9.54 Med: 9.43 Max: 21.75
Current: 13.83
During the past 13 years, GWA Group's highest Forward Rate of Return was 21.75. The lowest was -9.54. And the median was 9.43.
ASX:GWA's Forward Rate of Return (Yacktman) % is ranked better than 60.31% of 1305
companies
in the Construction industry
Industry Median: 8.95
vs ASX:GWA: 13.83
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.
GWA Group (ASX:GWA) 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.
GWA Group Forward Rate of Return (Yacktman) % Related Terms
GWA Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for GWA 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.
GWA Group Forward Rate of Return (Yacktman) % Chart
ASX:GWA vs TT, JCI, CARR: Forward Rate of Return (Yacktman) % Comparison
For the Building Products & Equipment subindustry, GWA 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.
GWA Group Forward Rate of Return (Yacktman) % vs Construction Industry
For the Construction industry and Industrials sector, GWA Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where GWA Group's Forward Rate of Return (Yacktman) % falls into.
GWA 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).
GWA Group's Forward Rate of Return of Jun. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.2045
/
2.3
+
0.0371
=
12.60 %
* 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 12.60% mean?
GWA Group (ASX:GWA) has a Forward Rate of Return (Yacktman) % of 12.60% 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 GWA Group and its competitors. This is 34% above median its historical median of 9.43. According to the industry distribution chart, GWA Group ranks #518 out of 1305 companies in the Construction industry, placing it in the top 39.7%.
Is GWA Group's Forward Rate of Return (Yacktman) % too high?
GWA Group's current Forward Rate of Return (Yacktman) % of 12.60% is 34% above median its 10-year median of 9.43. The Construction industry median Forward Rate of Return (Yacktman) % is 8.95. GWA Group's value of 12.60% is 40.8% above this industry median. Based on the distribution chart, GWA Group ranks #518 out of 1305 companies in the Construction industry, which is above the industry midpoint. Overall, GWA Group has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GWA Group's Forward Rate of Return (Yacktman) % compare to TT and JCI?
According to the Construction industry distribution chart, GWA Group ranks #518 out of 1305 companies for Forward Rate of Return (Yacktman) %. This puts GWA Group in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.95. GWA Group's value of 12.60% is 40.8% above this benchmark. While the company's 10-year median is 9.43 vs. the industry median of 8.95, GWA Group has consistently been above 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 Construction company?
The median Forward Rate of Return (Yacktman) % among Construction companies is 8.95, based on 1,305 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. GWA Group's current Forward Rate of Return (Yacktman) % of 12.60% is 40.8% above 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 GWA Group and its competitors. For the Construction industry, the median Forward Rate of Return (Yacktman) % is 8.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GWA Group's current Forward Rate of Return (Yacktman) % is 12.60%, which is 34% above median its own 10-year median of 9.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GWA Group stock overvalued right now?
Based on GuruFocus' analysis, GWA Group (ASX:GWA) is currently considered Modestly Undervalued. The stock's GF Value™ is A$2.47, compared to a current price of A$2.03 — trading 17.8% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 12.60%, which is 34% above median its 10-year median of 9.43 and 40.8% above the Construction industry median of 8.95. GWA Group's overall GF Score™ is 79/100 with 4 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 GWA Group (ASX:GWA), the current Forward Rate of Return (Yacktman) % is 12.60% 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 GWA Group (ASX:GWA) Overvalued in 2026?
Based on GuruFocus' analysis, GWA Group stock appears to be undervalued.
The current stock price of A$2.03 is trading 17.8% below its estimated GF Value™ of A$2.47.
GuruFocus considers GWA Group to be Modestly Undervalued.
Key valuation signals for ASX:GWA:
Forward Rate of Return (Yacktman) %: 12.60% (34% above median its 10-year median of 9.43)
GF Value™: A$2.47 vs. price of A$2.03 (17.8% below fair value)
Industry Position: 40.8% above the Construction median (#518 of 1305)
No single metric tells the full story. See the ASX:GWA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GWA Group Ltd is an Australian designer of sanitary ware and bathroom fittings that has undergone a divestment program to focus solely on the front-of-wall bathroom and kitchen fittings markets. GWA's portfolio of brands includes Caroma, Dorf, Fowler, and Clark, with Caroma, in particular, enjoying a long history and high brand awareness in the Australian market. The company has one reportable segment, Water Solutions. This segment includes the sale of vitreous china toilet suites, basins, plastic cisterns, taps and showers, baths, kitchen sinks, laundry tubs, domestic water control valves, smart products, and bathroom accessories.
79GF Score
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