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Chugai Pharmaceutical CoCHGCF -2.25%85 Forward Rate of Return (Yacktman) % is 5.65% as of Jun. 2026, which is 72% below its 10-year median of 20.38. GuruFocus rates CHGCF with a GF Score™ of 85/100 and a GF Value™ of $47.59 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 638 Drug Manufacturers companies, Chugai Pharmaceutical Co ranks better than 63.79% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Chugai Pharmaceutical Co's forward rate of return for was 5.65%.
The historical rank and industry rank for Chugai Pharmaceutical Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
CHGCF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.19 Med: 20.38 Max: 22.91
Current: 11.79
During the past 13 years, Chugai Pharmaceutical Co's highest Forward Rate of Return was 22.91. The lowest was 3.19. And the median was 20.38.
CHGCF's Forward Rate of Return (Yacktman) % is ranked better than 63.79% of 638
companies
in the Drug Manufacturers industry
Industry Median: 6.17
vs CHGCF: 11.79
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.
Chugai Pharmaceutical Co (OTCPK:CHGCF) 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.
Chugai Pharmaceutical Co Forward Rate of Return (Yacktman) % Related Terms
Chugai Pharmaceutical Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Chugai Pharmaceutical Co'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.
Chugai Pharmaceutical Co Forward Rate of Return (Yacktman) % Chart
CHGCF vs LLY, JNJ, ABBV: Forward Rate of Return (Yacktman) % Comparison
For the Drug Manufacturers - General subindustry, Chugai Pharmaceutical Co'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.
Chugai Pharmaceutical Co Forward Rate of Return (Yacktman) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Chugai Pharmaceutical Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Chugai Pharmaceutical Co's Forward Rate of Return (Yacktman) % falls into.
Chugai Pharmaceutical Co 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 5.65% mean?
Chugai Pharmaceutical Co (CHGCF) has a Forward Rate of Return (Yacktman) % of 5.65% 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 Chugai Pharmaceutical Co and its competitors. This is 72% below median its historical median of 20.38. Over the past decade, Chugai Pharmaceutical Co's Forward Rate of Return (Yacktman) % has ranged from 3.19 to 22.91. According to the industry distribution chart, Chugai Pharmaceutical Co ranks #231 out of 638 companies in the Drug Manufacturers industry, placing it in the top 36.2%.
Is Chugai Pharmaceutical Co's Forward Rate of Return (Yacktman) % too high?
Chugai Pharmaceutical Co's current Forward Rate of Return (Yacktman) % of 5.65% is 72% below median its 10-year median of 20.38. Over the past 10 years, this metric has ranged from a low of 3.19 to a high of 22.91. The Drug Manufacturers industry median Forward Rate of Return (Yacktman) % is 6.17. Chugai Pharmaceutical Co's value of 5.65% is 8.4% below this industry median. Based on the distribution chart, Chugai Pharmaceutical Co ranks #231 out of 638 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Chugai Pharmaceutical Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chugai Pharmaceutical Co's Forward Rate of Return (Yacktman) % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Chugai Pharmaceutical Co ranks #231 out of 638 companies for Forward Rate of Return (Yacktman) %. This puts Chugai Pharmaceutical Co in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 6.17. Chugai Pharmaceutical Co's value of 5.65% is 8.4% below this benchmark. Historically, Chugai Pharmaceutical Co's own Forward Rate of Return (Yacktman) % has ranged from 3.19 to 22.91 over the past decade. While the company's 10-year median is 20.38 vs. the industry median of 6.17, Chugai Pharmaceutical Co 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 Drug Manufacturers company?
The median Forward Rate of Return (Yacktman) % among Drug Manufacturers companies is 6.17, based on 638 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. Chugai Pharmaceutical Co's current Forward Rate of Return (Yacktman) % of 5.65% is 8.4% 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 Chugai Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Forward Rate of Return (Yacktman) % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chugai Pharmaceutical Co's current Forward Rate of Return (Yacktman) % is 5.65%, which is 72% below median its own 10-year median of 20.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chugai Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Chugai Pharmaceutical Co (CHGCF) is currently considered Modestly Undervalued. The stock's GF Value™ is $47.59, compared to a current price of $41.61 — trading 12.6% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 5.65%, which is 72% below median its 10-year median of 20.38 and 8.4% below the Drug Manufacturers industry median of 6.17. Chugai Pharmaceutical Co's overall GF Score™ is 85/100 with 1 warning sign 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 Chugai Pharmaceutical Co (CHGCF), the current Forward Rate of Return (Yacktman) % is 5.65% 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 Chugai Pharmaceutical Co (CHGCF) Overvalued in 2026?
Based on GuruFocus' analysis, Chugai Pharmaceutical Co stock appears to be undervalued.
The current stock price of $41.61 is trading 12.6% below its estimated GF Value™ of $47.59.
GuruFocus considers Chugai Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for CHGCF:
Forward Rate of Return (Yacktman) %: 5.65% (72% below median its 10-year median of 20.38)
GF Value™: $47.59 vs. price of $41.61 (12.6% below fair value)
Industry Position: 8.4% below the Drug Manufacturers median (#231 of 638)
No single metric tells the full story. See the CHGCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chugai Pharmaceutical is a Japanese drug developer and subsidiary of Roche Holding, which owns roughly 60% of the company. Founded in 1925, Chugai deals primarily in the Japanese market, where it generates roughly half of its revenue. It has been the leader in Japan's oncology market for the past decade, largely due to drugs licensed from its parent's portfolio. The company also develops its own innovative medicines. It is an industry leader in antibody technology with several flagship therapies, including Hemlibra (hemophilia), Actemra (rheumatoid arthritis, covid), Foundayo (oral obesity pill), and Nemluvio (atopic dermatitis, prurigo nodularis).
85GF Score
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