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The Vita Coco CoCOCO +1.06%93 Forward Rate of Return (Yacktman) % is 21.30% as of Jun. 2026, which is 7% above its 10-year median of 20.00. GuruFocus rates COCO with a GF Score™ of 93/100 and a GF Value™ of $48.19 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 84 Beverages - Non-Alcoholic companies, The Vita Coco Co ranks better than 86.9% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. The Vita Coco Co's forward rate of return for was 21.30%.
The historical rank and industry rank for The Vita Coco Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
COCO'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 20 Med: 20 Max: 21.65
Current: 21.65
During the past 7 years, The Vita Coco Co's highest Forward Rate of Return was 21.65. The lowest was 20.00. And the median was 20.00.
COCO's Forward Rate of Return (Yacktman) % is ranked better than 86.9% of 84
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 12.065
vs COCO: 21.65
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.
The Vita Coco Co (NAS:COCO) 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.
The Vita Coco Co Forward Rate of Return (Yacktman) % Related Terms
The Vita Coco Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for The Vita Coco 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.
The Vita Coco Co Forward Rate of Return (Yacktman) % Chart
COCO vs FIZZ, SUJA, BUDA: Forward Rate of Return (Yacktman) % Comparison
For the Beverages - Non-Alcoholic subindustry, The Vita Coco 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.
The Vita Coco Co Forward Rate of Return (Yacktman) % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Vita Coco Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where The Vita Coco Co's Forward Rate of Return (Yacktman) % falls into.
The Vita Coco 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 21.30% mean?
The Vita Coco Co (COCO) has a Forward Rate of Return (Yacktman) % of 21.30% 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 The Vita Coco Co and its competitors. This is near median its historical median of 20.00. Over the past decade, The Vita Coco Co's Forward Rate of Return (Yacktman) % has ranged from 20.00 to 21.65. According to the industry distribution chart, The Vita Coco Co ranks #11 out of 84 companies in the Beverages - Non-Alcoholic industry, placing it in the top 13.1%.
Is The Vita Coco Co's Forward Rate of Return (Yacktman) % too high?
The Vita Coco Co's current Forward Rate of Return (Yacktman) % of 21.30% is near median its 10-year median of 20.00. Over the past 10 years, this metric has ranged from a low of 20.00 to a high of 21.65. The Beverages - Non-Alcoholic industry median Forward Rate of Return (Yacktman) % is 12.07. The Vita Coco Co's value of 21.30% is 76.5% above this industry median. Based on the distribution chart, The Vita Coco Co ranks #11 out of 84 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, The Vita Coco Co has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Vita Coco Co's Forward Rate of Return (Yacktman) % compare to FIZZ and SUJA?
According to the Beverages - Non-Alcoholic industry distribution chart, The Vita Coco Co ranks #11 out of 84 companies for Forward Rate of Return (Yacktman) %. This places The Vita Coco Co in the top 13% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 12.07. The Vita Coco Co's value of 21.30% is 76.5% above this benchmark. Historically, The Vita Coco Co's own Forward Rate of Return (Yacktman) % has ranged from 20.00 to 21.65 over the past decade. While the company's 10-year median is 20.00 vs. the industry median of 12.07, The Vita Coco Co 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 Beverages - Non-Alcoholic company?
The median Forward Rate of Return (Yacktman) % among Beverages - Non-Alcoholic companies is 12.07, based on 84 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. The Vita Coco Co's current Forward Rate of Return (Yacktman) % of 21.30% is 76.5% 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 The Vita Coco Co and its competitors. For the Beverages - Non-Alcoholic industry, the median Forward Rate of Return (Yacktman) % is 12.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Vita Coco Co's current Forward Rate of Return (Yacktman) % is 21.30%, which is near median its own 10-year median of 20.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Vita Coco Co stock overvalued right now?
Based on GuruFocus' analysis, The Vita Coco Co (COCO) is currently considered Modestly Overvalued. The stock's GF Value™ is $48.19, compared to a current price of $56.33 — trading 16.9% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 21.30%, which is near median its 10-year median of 20.00 and 76.5% above the Beverages - Non-Alcoholic industry median of 12.07. The Vita Coco Co's overall GF Score™ is 93/100 with 2 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 The Vita Coco Co (COCO), the current Forward Rate of Return (Yacktman) % is 21.30% 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 The Vita Coco Co (COCO) Overvalued in 2026?
Based on GuruFocus' analysis, The Vita Coco Co stock appears to be overvalued.
The current stock price of $56.33 is trading 16.9% above its estimated GF Value™ of $48.19.
GuruFocus considers The Vita Coco Co to be Modestly Overvalued.
Key valuation signals for COCO:
Forward Rate of Return (Yacktman) %: 21.30% (near median its 10-year median of 20.00)
GF Value™: $48.19 vs. price of $56.33 (16.9% above fair value)
Industry Position: 76.5% above the Beverages - Non-Alcoholic median (#11 of 84)
No single metric tells the full story. See the COCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Vita Coco Co Inc is a plant-based functional hydration platform. Its products include Vita Coco Coconut Water, Private Label including coconut water and oil, and Other including Runa, Ever & Ever, and PWR LIFT product offerings, Vita Coco product extensions beyond coconut water, such as Vita Coco Sparkling, coconut milk products, and others. The company has two segments: The Americas segment which comprises of operations in the U.S. and Canada; and The International segment that comprises of operations in Europe, the Middle East, Africa and the Asia Pacific regions. The Americas segment derives maximum revenue. Geographical presence of the company is in United States, United Kingdom and All other countries.
93GF Score
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