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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. China Automotive Systems's forward rate of return for was 25.45%.
The historical rank and industry rank for China Automotive Systems's Forward Rate of Return (Yacktman) % or its related term are showing as below:
CAAS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -32.05 Med: -3.81 Max: 38.76
Current: 25.05
During the past 13 years, China Automotive Systems's highest Forward Rate of Return was 38.76. The lowest was -32.05. And the median was -3.81.
CAAS's Forward Rate of Return (Yacktman) % is ranked better than 90.1% of 990
companies
in the Vehicles & Parts industry
Industry Median: 10.15
vs CAAS: 25.05
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.
China Automotive Systems (NAS:CAAS) 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.
China Automotive Systems Forward Rate of Return (Yacktman) % Related Terms
China Automotive Systems Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for China Automotive Systems'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.
China Automotive Systems Forward Rate of Return (Yacktman) % Chart
CAAS vs INVZ, CVGI, SES: Forward Rate of Return (Yacktman) % Comparison
For the Auto Parts subindustry, China Automotive Systems'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.
China Automotive Systems Forward Rate of Return (Yacktman) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's Forward Rate of Return (Yacktman) % falls into.
China Automotive Systems 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 25.45% mean?
China Automotive Systems (CAAS) has a Forward Rate of Return (Yacktman) % of 25.45% as of Dec. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on China Automotive Systems and its competitors. According to the industry distribution chart, China Automotive Systems ranks #98 out of 990 companies in the Vehicles & Parts industry, placing it in the top 9.9%.
Is China Automotive Systems' Forward Rate of Return (Yacktman) % too high?
China Automotive Systems' current Forward Rate of Return (Yacktman) % is 25.45%. The Vehicles & Parts industry median Forward Rate of Return (Yacktman) % is 10.15. China Automotive Systems' value of 25.45% is 150.7% above this industry median. Based on the distribution chart, China Automotive Systems ranks #98 out of 990 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, China Automotive Systems has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Automotive Systems' Forward Rate of Return (Yacktman) % compare to INVZ and CVGI?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #98 out of 990 companies for Forward Rate of Return (Yacktman) %. This places China Automotive Systems in the top 10% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 10.15. China Automotive Systems' value of 25.45% is 150.7% above 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 Vehicles & Parts company?
The median Forward Rate of Return (Yacktman) % among Vehicles & Parts companies is 10.15, based on 990 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. China Automotive Systems's current Forward Rate of Return (Yacktman) % of 25.45% is 150.7% 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 China Automotive Systems and its competitors. For the Vehicles & Parts industry, the median Forward Rate of Return (Yacktman) % is 10.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current Forward Rate of Return (Yacktman) % is 25.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Automotive Systems stock overvalued right now?
Based on GuruFocus' analysis, China Automotive Systems (CAAS) is currently considered Modestly Undervalued. The stock's GF Value™ is $5.32, compared to a current price of $4.55 — trading 14.6% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 25.45% and 150.7% above the Vehicles & Parts industry median of 10.15. China Automotive Systems' overall GF Score™ is 78/100 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 China Automotive Systems (CAAS), the current Forward Rate of Return (Yacktman) % is 25.45% as of Dec. 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 China Automotive Systems (CAAS) Overvalued in 2026?
Based on GuruFocus' analysis, China Automotive Systems stock appears to be undervalued.
The current stock price of $4.55 is trading 14.6% below its estimated GF Value™ of $5.32.
GuruFocus considers China Automotive Systems to be Modestly Undervalued.
Key valuation signals for CAAS:
Forward Rate of Return (Yacktman) %: 25.45%
GF Value™: $5.32 vs. price of $4.55 (14.6% below fair value)
Industry Position: 150.7% above the Vehicles & Parts median (#98 of 990)
No single metric tells the full story. See the CAAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Automotive Systems Inc is a holding company. The firm, through its subsidiary, is a supplier of power steering systems and components to China's automotive industry. Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. The company offers four separate series of power steering models, including rack and pinion power steering, integral power steering, electronic power steering, steering columns, steering oil pumps, and steering hoses. Geographically, it derives a majority of its revenue from China.
78GF Score
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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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