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Sigma HealthcareASX:SIG +0.37%48 Forward Rate of Return (Yacktman) % is 1.91% as of Jun. 2026. GuruFocus rates ASX:SIG with a GF Score™ of 48/100 and a GF Value™ of A$0.89 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 84 Medical Distribution companies, Sigma Healthcare ranks worse than 61.9% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Sigma Healthcare's forward rate of return for was 1.91%.
The historical rank and industry rank for Sigma Healthcare's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ASX:SIG'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -14.91 Med: -1.43 Max: 30.39
Current: 1.89
During the past 13 years, Sigma Healthcare's highest Forward Rate of Return was 30.39. The lowest was -14.91. And the median was -1.43.
ASX:SIG's Forward Rate of Return (Yacktman) % is ranked worse than 61.9% of 84
companies
in the Medical Distribution industry
Industry Median: 9.465
vs ASX:SIG: 1.89
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.
Sigma Healthcare (ASX:SIG) 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.
Sigma Healthcare Forward Rate of Return (Yacktman) % Related Terms
Sigma Healthcare Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Sigma Healthcare'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.
Sigma Healthcare Forward Rate of Return (Yacktman) % Chart
ASX:SIG vs MCK, COR, CAH: Forward Rate of Return (Yacktman) % Comparison
For the Medical Distribution subindustry, Sigma Healthcare'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.
Sigma Healthcare Forward Rate of Return (Yacktman) % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Sigma Healthcare's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Sigma Healthcare's Forward Rate of Return (Yacktman) % falls into.
Sigma Healthcare 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 1.91% mean?
Sigma Healthcare (ASX:SIG) has a Forward Rate of Return (Yacktman) % of 1.91% 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 Sigma Healthcare and its competitors. According to the industry distribution chart, Sigma Healthcare ranks #52 out of 84 companies in the Medical Distribution industry, placing it in the top 61.9%.
Is Sigma Healthcare's Forward Rate of Return (Yacktman) % too high?
Sigma Healthcare's current Forward Rate of Return (Yacktman) % is 1.91%. The Medical Distribution industry median Forward Rate of Return (Yacktman) % is 9.47. Sigma Healthcare's value of 1.91% is 79.8% below this industry median. Based on the distribution chart, Sigma Healthcare ranks #52 out of 84 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Sigma Healthcare has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sigma Healthcare's Forward Rate of Return (Yacktman) % compare to MCK and COR?
According to the Medical Distribution industry distribution chart, Sigma Healthcare ranks #52 out of 84 companies for Forward Rate of Return (Yacktman) %. This places Sigma Healthcare in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.47. Sigma Healthcare's value of 1.91% is 79.8% below this benchmark. 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 Medical Distribution company?
The median Forward Rate of Return (Yacktman) % among Medical Distribution companies is 9.47, based on 84 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. Sigma Healthcare's current Forward Rate of Return (Yacktman) % of 1.91% is 79.8% 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 Sigma Healthcare and its competitors. For the Medical Distribution industry, the median Forward Rate of Return (Yacktman) % is 9.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sigma Healthcare's current Forward Rate of Return (Yacktman) % is 1.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sigma Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Sigma Healthcare (ASX:SIG) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.89, compared to a current price of A$2.70 — trading 203.4% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 1.91% and 79.8% below the Medical Distribution industry median of 9.47. Sigma Healthcare's overall GF Score™ is 48/100 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 Sigma Healthcare (ASX:SIG), the current Forward Rate of Return (Yacktman) % is 1.91% 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 Sigma Healthcare (ASX:SIG) Overvalued in 2026?
Based on GuruFocus' analysis, Sigma Healthcare stock appears to be overvalued.
The current stock price of A$2.70 is trading 203.4% above its estimated GF Value™ of A$0.89.
GuruFocus considers Sigma Healthcare to be Significantly Overvalued.
Key valuation signals for ASX:SIG:
Forward Rate of Return (Yacktman) %: 1.91%
GF Value™: A$0.89 vs. price of A$2.70 (203.4% above fair value)
Industry Position: 79.8% below the Medical Distribution median (#52 of 84)
No single metric tells the full story. See the ASX:SIG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sigma Healthcare is Australia's largest retail pharmacy franchisor, most notably owning the Chemist Warehouse brand, which it merged with in 2025. Sigma is also Australia's largest full-line wholesaler to franchised and independent pharmacies and distributes a broad range of pharmacy products, including prescription medicines, over-the-counter products, and front of store, or FOS, products, at low prices. The group also operates in New Zealand, Ireland, China, and Dubai, has a growing private label range, and offers third-party logistics services.
48GF Score
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