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Temple & Webster GroupASX:TPW -2.24%76 Forward Rate of Return (Yacktman) % is 9.23% as of Jun. 2025, which is 25% below its 10-year median of 12.28. GuruFocus rates ASX:TPW with a GF Score™ of 76/100 and a GF Value™ of A$15.60 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 793 Retail - Cyclical companies, Temple & Webster Group ranks worse than 52.71% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Temple & Webster Group's forward rate of return for was 9.23%.
The historical rank and industry rank for Temple & Webster Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ASX:TPW'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 9.06 Med: 12.28 Max: 21.58
Current: 11.58
During the past 10 years, Temple & Webster Group's highest Forward Rate of Return was 21.58. The lowest was 9.06. And the median was 12.28.
ASX:TPW's Forward Rate of Return (Yacktman) % is ranked worse than 52.71% of 793
companies
in the Retail - Cyclical industry
Industry Median: 12.71
vs ASX:TPW: 11.58
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.
Temple & Webster Group (ASX:TPW) 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.
Temple & Webster Group Forward Rate of Return (Yacktman) % Related Terms
Temple & Webster Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Temple & Webster 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.
Temple & Webster Group Forward Rate of Return (Yacktman) % Chart
ASX:TPW vs CASY, WSM, ULTA: Forward Rate of Return (Yacktman) % Comparison
For the Specialty Retail subindustry, Temple & Webster 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.
Temple & Webster Group Forward Rate of Return (Yacktman) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Temple & Webster Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Temple & Webster Group's Forward Rate of Return (Yacktman) % falls into.
Temple & Webster 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 9.23% mean?
Temple & Webster Group (ASX:TPW) has a Forward Rate of Return (Yacktman) % of 9.23% 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 Temple & Webster Group and its competitors. This is 25% below median its historical median of 12.28. Over the past decade, Temple & Webster Group's Forward Rate of Return (Yacktman) % has ranged from 9.06 to 21.58. According to the industry distribution chart, Temple & Webster Group ranks #418 out of 793 companies in the Retail - Cyclical industry, placing it in the top 52.7%.
Is Temple & Webster Group's Forward Rate of Return (Yacktman) % too high?
Temple & Webster Group's current Forward Rate of Return (Yacktman) % of 9.23% is 25% below median its 10-year median of 12.28. Over the past 10 years, this metric has ranged from a low of 9.06 to a high of 21.58. The Retail - Cyclical industry median Forward Rate of Return (Yacktman) % is 12.71. Temple & Webster Group's value of 9.23% is 27.4% below this industry median. Based on the distribution chart, Temple & Webster Group ranks #418 out of 793 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Temple & Webster Group has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Temple & Webster Group's Forward Rate of Return (Yacktman) % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Temple & Webster Group ranks #418 out of 793 companies for Forward Rate of Return (Yacktman) %. This places Temple & Webster Group in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 12.71. Temple & Webster Group's value of 9.23% is 27.4% below this benchmark. Historically, Temple & Webster Group's own Forward Rate of Return (Yacktman) % has ranged from 9.06 to 21.58 over the past decade. While the company's 10-year median is 12.28 vs. the industry median of 12.71, Temple & Webster 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 Retail - Cyclical company?
The median Forward Rate of Return (Yacktman) % among Retail - Cyclical companies is 12.71, based on 793 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. Temple & Webster Group's current Forward Rate of Return (Yacktman) % of 9.23% is 27.4% 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 Temple & Webster Group and its competitors. For the Retail - Cyclical industry, the median Forward Rate of Return (Yacktman) % is 12.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Temple & Webster Group's current Forward Rate of Return (Yacktman) % is 9.23%, which is 25% below median its own 10-year median of 12.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Temple & Webster Group stock overvalued right now?
Based on GuruFocus' analysis, Temple & Webster Group (ASX:TPW) is currently considered Possible Value Trap. The stock's GF Value™ is A$15.60, compared to a current price of A$5.68 — trading 63.6% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 9.23%, which is 25% below median its 10-year median of 12.28 and 27.4% below the Retail - Cyclical industry median of 12.71. Temple & Webster Group's overall GF Score™ is 76/100 with 5 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 Temple & Webster Group (ASX:TPW), the current Forward Rate of Return (Yacktman) % is 9.23% 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 Temple & Webster Group (ASX:TPW) Overvalued in 2026?
Based on GuruFocus' analysis, Temple & Webster Group stock appears to be undervalued.
The current stock price of A$5.68 is trading 63.6% below its estimated GF Value™ of A$15.60.
GuruFocus considers Temple & Webster Group to be Possible Value Trap.
Key valuation signals for ASX:TPW:
Forward Rate of Return (Yacktman) %: 9.23% (25% below median its 10-year median of 12.28)
GF Value™: A$15.60 vs. price of A$5.68 (63.6% below fair value)
Industry Position: 27.4% below the Retail - Cyclical median (#418 of 793)
No single metric tells the full story. See the ASX:TPW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Temple & Webster Group Ltd is a pure play online retailer of furniture and homewares. Some of the company's products include office Furniture, Rugs, Bed & Bath, Decor, Lighting, Outdoor, Office, and others. The Group operates in one segment, being the sale of furniture, homewares, and home improvement products through its online platform.
76GF Score
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