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Convatec GroupCHIX:CTECL -1.76%76 Forward Rate of Return (Yacktman) % is 10.55% as of Dec. 2025, which is 134% above its 10-year median of 4.51. GuruFocus rates CHIX:CTECL with a GF Score™ of 76/100 and a GF Value™ of £2.65 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 378 Medical Devices & Instruments companies, Convatec Group ranks better than 59.79% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Convatec Group's forward rate of return for was 10.55%.
The historical rank and industry rank for Convatec Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
CHIX:CTECl'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -0.44 Med: 4.51 Max: 13.58
Current: 10.81
During the past 13 years, Convatec Group's highest Forward Rate of Return was 13.58. The lowest was -0.44. And the median was 4.51.
CHIX:CTECl's Forward Rate of Return (Yacktman) % is ranked better than 59.79% of 378
companies
in the Medical Devices & Instruments industry
Industry Median: 6.66
vs CHIX:CTECl: 10.81
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.
Convatec Group (CHIX:CTECl) 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.
Convatec Group Forward Rate of Return (Yacktman) % Related Terms
Convatec Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Convatec 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.
Convatec Group Forward Rate of Return (Yacktman) % Chart
CHIX:CTECL vs ISRG, BDX, RMD: Forward Rate of Return (Yacktman) % Comparison
For the Medical Instruments & Supplies subindustry, Convatec 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.
Convatec Group Forward Rate of Return (Yacktman) % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Convatec Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Convatec Group's Forward Rate of Return (Yacktman) % falls into.
Convatec 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 10.55% mean?
Convatec Group (CHIX:CTECL) has a Forward Rate of Return (Yacktman) % of 10.55% 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 Convatec Group and its competitors. This is 134% above median its historical median of 4.51. According to the industry distribution chart, Convatec Group ranks #152 out of 378 companies in the Medical Devices & Instruments industry, placing it in the top 40.2%.
Is Convatec Group's Forward Rate of Return (Yacktman) % too high?
Convatec Group's current Forward Rate of Return (Yacktman) % of 10.55% is 134% above median its 10-year median of 4.51. The Medical Devices & Instruments industry median Forward Rate of Return (Yacktman) % is 6.66. Convatec Group's value of 10.55% is 58.4% above this industry median. Based on the distribution chart, Convatec Group ranks #152 out of 378 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Convatec Group has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Convatec Group's Forward Rate of Return (Yacktman) % compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Convatec Group ranks #152 out of 378 companies for Forward Rate of Return (Yacktman) %. This puts Convatec Group in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 6.66. Convatec Group's value of 10.55% is 58.4% above this benchmark. While the company's 10-year median is 4.51 vs. the industry median of 6.66, Convatec Group has consistently been above 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 Medical Devices & Instruments company?
The median Forward Rate of Return (Yacktman) % among Medical Devices & Instruments companies is 6.66, based on 378 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. Convatec Group's current Forward Rate of Return (Yacktman) % of 10.55% is 58.4% 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 Convatec Group and its competitors. For the Medical Devices & Instruments industry, the median Forward Rate of Return (Yacktman) % is 6.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Convatec Group's current Forward Rate of Return (Yacktman) % is 10.55%, which is 134% above median its own 10-year median of 4.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Convatec Group stock overvalued right now?
Based on GuruFocus' analysis, Convatec Group (CHIX:CTECL) is currently considered Modestly Undervalued. The stock's GF Value™ is £2.65, compared to a current price of £2.29 — trading 13.7% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 10.55%, which is 134% above median its 10-year median of 4.51 and 58.4% above the Medical Devices & Instruments industry median of 6.66. Convatec Group's overall GF Score™ is 76/100 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 Convatec Group (CHIX:CTECL), the current Forward Rate of Return (Yacktman) % is 10.55% 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 Convatec Group (CHIX:CTECL) Overvalued in 2026?
Based on GuruFocus' analysis, Convatec Group stock appears to be undervalued.
The current stock price of £2.29 is trading 13.7% below its estimated GF Value™ of £2.65.
GuruFocus considers Convatec Group to be Modestly Undervalued.
Key valuation signals for CHIX:CTECL:
Forward Rate of Return (Yacktman) %: 10.55% (134% above median its 10-year median of 4.51)
GF Value™: £2.65 vs. price of £2.29 (13.7% below fair value)
Industry Position: 58.4% above the Medical Devices & Instruments median (#152 of 378)
No single metric tells the full story. See the CHIX:CTECL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Originally spun out of Bristol-Myers Squibb, Convatec designs, manufactures, and markets advanced wound care, ostomy, continence care, and infusion sets for the acute-care hospital and chronic-care home settings. Advanced wound care and ostomy supplies are the largest divisions, accounting for 32% and 28% of total revenue, respectively. Continence care has become a slightly smaller business (22% of revenue) following the decision to exit the acute care market, and infusion sets contribute 18% of consolidated revenue.
76GF 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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