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Watches of Switzerland GroupCHIX:WOSGL +1.10%88 Forward Rate of Return (Yacktman) % is 20.61% as of Apr. 2026, which is 20% below its 10-year median of 25.82. GuruFocus rates CHIX:WOSGL with a GF Score™ of 88/100 and a GF Value™ of £5.28 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 795 Retail - Cyclical companies, Watches of Switzerland Group ranks better than 61.64% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Watches of Switzerland Group's forward rate of return for was 20.61%.
The historical rank and industry rank for Watches of Switzerland Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
CHIX:WOSGl'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 16.81 Med: 25.82 Max: 34.92
Current: 17.35
During the past 11 years, Watches of Switzerland Group's highest Forward Rate of Return was 34.92. The lowest was 16.81. And the median was 25.82.
CHIX:WOSGl's Forward Rate of Return (Yacktman) % is ranked better than 61.64% of 795
companies
in the Retail - Cyclical industry
Industry Median: 12.76
vs CHIX:WOSGl: 17.35
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.
Watches of Switzerland Group (CHIX:WOSGl) 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.
Watches of Switzerland Group Forward Rate of Return (Yacktman) % Related Terms
Watches of Switzerland Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Watches of Switzerland 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.
Watches of Switzerland Group Forward Rate of Return (Yacktman) % Chart
CHIX:WOSGL vs TPR, SIG: Forward Rate of Return (Yacktman) % Comparison
For the Luxury Goods subindustry, Watches of Switzerland 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.
Watches of Switzerland Group Forward Rate of Return (Yacktman) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Watches of Switzerland Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Watches of Switzerland Group's Forward Rate of Return (Yacktman) % falls into.
Watches of Switzerland 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 20.61% mean?
Watches of Switzerland Group (CHIX:WOSGL) has a Forward Rate of Return (Yacktman) % of 20.61% as of Apr. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Watches of Switzerland Group and its competitors. This is 20% below median its historical median of 25.82. Over the past decade, Watches of Switzerland Group's Forward Rate of Return (Yacktman) % has ranged from 16.81 to 34.92. According to the industry distribution chart, Watches of Switzerland Group ranks #305 out of 795 companies in the Retail - Cyclical industry, placing it in the top 38.4%.
Is Watches of Switzerland Group's Forward Rate of Return (Yacktman) % too high?
Watches of Switzerland Group's current Forward Rate of Return (Yacktman) % of 20.61% is 20% below median its 10-year median of 25.82. Over the past 10 years, this metric has ranged from a low of 16.81 to a high of 34.92. The Retail - Cyclical industry median Forward Rate of Return (Yacktman) % is 12.76. Watches of Switzerland Group's value of 20.61% is 61.5% above this industry median. Based on the distribution chart, Watches of Switzerland Group ranks #305 out of 795 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Watches of Switzerland Group has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watches of Switzerland Group's Forward Rate of Return (Yacktman) % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Watches of Switzerland Group ranks #305 out of 795 companies for Forward Rate of Return (Yacktman) %. This puts Watches of Switzerland Group in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 12.76. Watches of Switzerland Group's value of 20.61% is 61.5% above this benchmark. Historically, Watches of Switzerland Group's own Forward Rate of Return (Yacktman) % has ranged from 16.81 to 34.92 over the past decade. While the company's 10-year median is 25.82 vs. the industry median of 12.76, Watches of Switzerland 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 Retail - Cyclical company?
The median Forward Rate of Return (Yacktman) % among Retail - Cyclical companies is 12.76, based on 795 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. Watches of Switzerland Group's current Forward Rate of Return (Yacktman) % of 20.61% is 61.5% 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 Watches of Switzerland Group and its competitors. For the Retail - Cyclical industry, the median Forward Rate of Return (Yacktman) % is 12.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watches of Switzerland Group's current Forward Rate of Return (Yacktman) % is 20.61%, which is 20% below median its own 10-year median of 25.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watches of Switzerland Group stock overvalued right now?
Based on GuruFocus' analysis, Watches of Switzerland Group (CHIX:WOSGL) is currently considered Significantly Overvalued. The stock's GF Value™ is £5.28, compared to a current price of £7.37 — trading 39.6% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 20.61%, which is 20% below median its 10-year median of 25.82 and 61.5% above the Retail - Cyclical industry median of 12.76. Watches of Switzerland Group's overall GF Score™ is 88/100 with 6 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 Watches of Switzerland Group (CHIX:WOSGL), the current Forward Rate of Return (Yacktman) % is 20.61% as of Apr. 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 Watches of Switzerland Group (CHIX:WOSGL) Overvalued in 2026?
Based on GuruFocus' analysis, Watches of Switzerland Group stock appears to be overvalued.
The current stock price of £7.37 is trading 39.6% above its estimated GF Value™ of £5.28.
GuruFocus considers Watches of Switzerland Group to be Significantly Overvalued.
Key valuation signals for CHIX:WOSGL:
Forward Rate of Return (Yacktman) %: 20.61% (20% below median its 10-year median of 25.82)
GF Value™: £5.28 vs. price of £7.37 (39.6% above fair value)
Industry Position: 61.5% above the Retail - Cyclical median (#305 of 795)
No single metric tells the full story. See the CHIX:WOSGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watches of Switzerland Group PLC is a retailer of luxury watches and jewellerys in the United Kingdom. Other than luxury watch offerings, the company also offers luxury jewellery, fashion, and classic watches and a range of watch and jewellery aftercare services. The company's geographical segments are the United Kingdom and Europe, and the United States, of which the majority of the revenue comes from the United Kingdom and Europe segment.
88GF Score
Get the complete analysis for CHIX:WOSGL
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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