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Builders FirstSourceBLDR -1.90%69 Forward Rate of Return (Yacktman) % is 8.43% as of Jun. 2026, which is 67% below its 10-year median of 25.60. GuruFocus rates BLDR with a GF Score™ of 69/100 and a GF Value™ of $129.14 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 1,309 Construction companies, Builders FirstSource ranks better than 62.8% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Builders FirstSource's forward rate of return for was 8.43%.
The historical rank and industry rank for Builders FirstSource's Forward Rate of Return (Yacktman) % or its related term are showing as below:
BLDR'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 9.2 Med: 25.6 Max: 33.33
Current: 14.71
During the past 13 years, Builders FirstSource's highest Forward Rate of Return was 33.33. The lowest was 9.20. And the median was 25.60.
BLDR's Forward Rate of Return (Yacktman) % is ranked better than 62.8% of 1309
companies
in the Construction industry
Industry Median: 8.9
vs BLDR: 14.71
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.
Builders FirstSource (NYSE:BLDR) 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.
Builders FirstSource Forward Rate of Return (Yacktman) % Related Terms
Builders FirstSource Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Builders FirstSource'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.
Builders FirstSource Forward Rate of Return (Yacktman) % Chart
BLDR vs AWI, AAON, FBIN: Forward Rate of Return (Yacktman) % Comparison
For the Building Products & Equipment subindustry, Builders FirstSource'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.
Builders FirstSource Forward Rate of Return (Yacktman) % vs Construction Industry
For the Construction industry and Industrials sector, Builders FirstSource's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Builders FirstSource's Forward Rate of Return (Yacktman) % falls into.
Builders FirstSource 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 8.43% mean?
Builders FirstSource (BLDR) has a Forward Rate of Return (Yacktman) % of 8.43% 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 Builders FirstSource and its competitors. This is 67% below median its historical median of 25.60. Over the past decade, Builders FirstSource's Forward Rate of Return (Yacktman) % has ranged from 9.20 to 33.33. According to the industry distribution chart, Builders FirstSource ranks #487 out of 1309 companies in the Construction industry, placing it in the top 37.2%.
Is Builders FirstSource's Forward Rate of Return (Yacktman) % too high?
Builders FirstSource's current Forward Rate of Return (Yacktman) % of 8.43% is 67% below median its 10-year median of 25.60. Over the past 10 years, this metric has ranged from a low of 9.20 to a high of 33.33. The Construction industry median Forward Rate of Return (Yacktman) % is 8.90. Builders FirstSource's value of 8.43% is 5.3% below this industry median. Based on the distribution chart, Builders FirstSource ranks #487 out of 1309 companies in the Construction industry, which is above the industry midpoint. Overall, Builders FirstSource has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Builders FirstSource's Forward Rate of Return (Yacktman) % compare to AWI and AAON?
According to the Construction industry distribution chart, Builders FirstSource ranks #487 out of 1309 companies for Forward Rate of Return (Yacktman) %. This puts Builders FirstSource in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.90. Builders FirstSource's value of 8.43% is 5.3% below this benchmark. Historically, Builders FirstSource's own Forward Rate of Return (Yacktman) % has ranged from 9.20 to 33.33 over the past decade. While the company's 10-year median is 25.60 vs. the industry median of 8.90, Builders FirstSource 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 Construction company?
The median Forward Rate of Return (Yacktman) % among Construction companies is 8.90, based on 1,309 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. Builders FirstSource's current Forward Rate of Return (Yacktman) % of 8.43% is 5.3% 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 Builders FirstSource and its competitors. For the Construction industry, the median Forward Rate of Return (Yacktman) % is 8.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Builders FirstSource's current Forward Rate of Return (Yacktman) % is 8.43%, which is 67% below median its own 10-year median of 25.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Builders FirstSource stock overvalued right now?
Based on GuruFocus' analysis, Builders FirstSource (BLDR) is currently considered Significantly Undervalued. The stock's GF Value™ is $129.14, compared to a current price of $61.39 — trading 52.5% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 8.43%, which is 67% below median its 10-year median of 25.60 and 5.3% below the Construction industry median of 8.90. Builders FirstSource's overall GF Score™ is 69/100 with 7 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 Builders FirstSource (BLDR), the current Forward Rate of Return (Yacktman) % is 8.43% 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 Builders FirstSource (BLDR) Overvalued in 2026?
Based on GuruFocus' analysis, Builders FirstSource stock appears to be undervalued.
The current stock price of $61.39 is trading 52.5% below its estimated GF Value™ of $129.14.
GuruFocus considers Builders FirstSource to be Significantly Undervalued.
Key valuation signals for BLDR:
Forward Rate of Return (Yacktman) %: 8.43% (67% below median its 10-year median of 25.60)
GF Value™: $129.14 vs. price of $61.39 (52.5% below fair value)
Industry Position: 5.3% below the Construction median (#487 of 1309)
No single metric tells the full story. See the BLDR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing, and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.
69GF Score
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