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China Construction BankCICHF 38 Forward Rate of Return (Yacktman) % is 42.95% as of Jun. 2026, which is 5% above its 10-year median of 40.81. GuruFocus rates CICHF with a GF Score™ of 38/100 and a GF Value™ of $0.97 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,417 Banks companies, China Construction Bank ranks better than 85.96% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. China Construction Bank's forward rate of return for was 42.95%.
The historical rank and industry rank for China Construction Bank's Forward Rate of Return (Yacktman) % or its related term are showing as below:
CICHF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 28.13 Med: 40.81 Max: 53.42
Current: 39.51
During the past 13 years, China Construction Bank's highest Forward Rate of Return was 53.42. The lowest was 28.13. And the median was 40.81.
CICHF's Forward Rate of Return (Yacktman) % is ranked better than 85.96% of 1417
companies
in the Banks industry
Industry Median: 15.58
vs CICHF: 39.51
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 Construction Bank (OTCPK:CICHF) 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 Book Value 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 Construction Bank Forward Rate of Return (Yacktman) % Related Terms
China Construction Bank Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for China Construction Bank'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 Construction Bank Forward Rate of Return (Yacktman) % Chart
CICHF vs JPM, BAC, WFC: Forward Rate of Return (Yacktman) % Comparison
For the Banks - Diversified subindustry, China Construction Bank'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 Construction Bank Forward Rate of Return (Yacktman) % vs Banks Industry
For the Banks industry and Financial Services sector, China Construction Bank's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where China Construction Bank's Forward Rate of Return (Yacktman) % falls into.
China Construction Bank 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 42.95% mean?
China Construction Bank (CICHF) has a Forward Rate of Return (Yacktman) % of 42.95% 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 China Construction Bank and its competitors. This is near median its historical median of 40.81. Over the past decade, China Construction Bank's Forward Rate of Return (Yacktman) % has ranged from 28.13 to 53.42. According to the industry distribution chart, China Construction Bank ranks #199 out of 1417 companies in the Banks industry, placing it in the top 14%.
Is China Construction Bank's Forward Rate of Return (Yacktman) % too high?
China Construction Bank's current Forward Rate of Return (Yacktman) % of 42.95% is near median its 10-year median of 40.81. Over the past 10 years, this metric has ranged from a low of 28.13 to a high of 53.42. The Banks industry median Forward Rate of Return (Yacktman) % is 15.58. China Construction Bank's value of 42.95% is 175.7% above this industry median. Based on the distribution chart, China Construction Bank ranks #199 out of 1417 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, China Construction Bank has a GF Score™ of 38/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Construction Bank's Forward Rate of Return (Yacktman) % compare to JPM and BAC?
According to the Banks industry distribution chart, China Construction Bank ranks #199 out of 1417 companies for Forward Rate of Return (Yacktman) %. This places China Construction Bank in the top 14% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 15.58. China Construction Bank's value of 42.95% is 175.7% above this benchmark. Historically, China Construction Bank's own Forward Rate of Return (Yacktman) % has ranged from 28.13 to 53.42 over the past decade. While the company's 10-year median is 40.81 vs. the industry median of 15.58, China Construction Bank 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 Banks company?
The median Forward Rate of Return (Yacktman) % among Banks companies is 15.58, based on 1,417 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 Construction Bank's current Forward Rate of Return (Yacktman) % of 42.95% is 175.7% 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 Construction Bank and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Construction Bank's current Forward Rate of Return (Yacktman) % is 42.95%, which is near median its own 10-year median of 40.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Construction Bank stock overvalued right now?
Based on GuruFocus' analysis, China Construction Bank (CICHF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.97, compared to a current price of $1.15 — trading 18.6% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 42.95%, which is near median its 10-year median of 40.81 and 175.7% above the Banks industry median of 15.58. China Construction Bank's overall GF Score™ is 38/100 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 China Construction Bank (CICHF), the current Forward Rate of Return (Yacktman) % is 42.95% 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 China Construction Bank (CICHF) Overvalued in 2026?
Based on GuruFocus' analysis, China Construction Bank stock appears to be overvalued.
The current stock price of $1.15 is trading 18.6% above its estimated GF Value™ of $0.97.
GuruFocus considers China Construction Bank to be Modestly Overvalued.
Key valuation signals for CICHF:
Forward Rate of Return (Yacktman) %: 42.95% (near median its 10-year median of 40.81)
GF Value™: $0.97 vs. price of $1.15 (18.6% above fair value)
Industry Position: 175.7% above the Banks median (#199 of 1417)
No single metric tells the full story. See the CICHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Construction Bank, headquartered in Beijing, is China's second-largest bank. It went public on the Hong Kong Stock Exchange in 2005 and listed shares in mainland China in 2007. Central Huijin Investment, China's sovereign wealth fund manager, is the largest shareholder with a 57% share. Fullerton Financial Holdings (a subsidiary of Temasek) is the second-largest shareholder with a 4.99% stake. CCB strives to provide customers with comprehensive financial services. The corporate banking, retail banking, and wholesale banking business segments accounted for 22%, 41%, and 34% of profit before tax, respectively, in 2025.
38GF 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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