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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Espey Manufacturing & Electronics's forward rate of return for was 23.68%.
The historical rank and industry rank for Espey Manufacturing & Electronics's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ESP'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -36 Med: -6.76 Max: 27.56
Current: 23.16
During the past 13 years, Espey Manufacturing & Electronics's highest Forward Rate of Return was 27.56. The lowest was -36.00. And the median was -6.76.
ESP's Forward Rate of Return (Yacktman) % is ranked better than 93.07% of 2149
companies
in the Industrial Products industry
Industry Median: 7.33
vs ESP: 23.16
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.
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.
Espey Manufacturing & Electronics Forward Rate of Return (Yacktman) % Related Terms
Espey Manufacturing & Electronics Forward Rate of Return (Yacktman) % Historical Data
* 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.
ESP vs SKYX, EAF, UTKN: Forward Rate of Return (Yacktman) % Comparison
For the Electrical Equipment & Parts subindustry, Espey Manufacturing & Electronics'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.
Espey Manufacturing & Electronics Forward Rate of Return (Yacktman) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Espey Manufacturing & Electronics's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Espey Manufacturing & Electronics's Forward Rate of Return (Yacktman) % falls into.
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 23.68% mean?
Espey Manufacturing & Electronics (ESP) has a Forward Rate of Return (Yacktman) % of 23.68% as of Mar. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Espey Manufacturing & Electronics and its competitors. According to the industry distribution chart, Espey Manufacturing & Electronics ranks #149 out of 2149 companies in the Industrial Products industry, placing it in the top 6.9%.
Is Espey Manufacturing & Electronics' Forward Rate of Return (Yacktman) % too high?
Espey Manufacturing & Electronics' current Forward Rate of Return (Yacktman) % is 23.68%. The Industrial Products industry median Forward Rate of Return (Yacktman) % is 7.33. Espey Manufacturing & Electronics' value of 23.68% is 223.1% above this industry median. Based on the distribution chart, Espey Manufacturing & Electronics ranks #149 out of 2149 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Espey Manufacturing & Electronics has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Espey Manufacturing & Electronics' Forward Rate of Return (Yacktman) % compare to SKYX and EAF?
According to the Industrial Products industry distribution chart, Espey Manufacturing & Electronics ranks #149 out of 2149 companies for Forward Rate of Return (Yacktman) %. This places Espey Manufacturing & Electronics in the top 7% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 7.33. Espey Manufacturing & Electronics' value of 23.68% is 223.1% above this benchmark. 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 an Industrial Products company?
The median Forward Rate of Return (Yacktman) % among Industrial Products companies is 7.33, based on 2,149 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. Espey Manufacturing & Electronics's current Forward Rate of Return (Yacktman) % of 23.68% is 223.1% 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 Espey Manufacturing & Electronics and its competitors. For the Industrial Products industry, the median Forward Rate of Return (Yacktman) % is 7.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Espey Manufacturing & Electronics's current Forward Rate of Return (Yacktman) % is 23.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Espey Manufacturing & Electronics stock overvalued right now?
Based on GuruFocus' analysis, Espey Manufacturing & Electronics (ESP) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.58, compared to a current price of $63.58 — trading 122.5% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 23.68% and 223.1% above the Industrial Products industry median of 7.33. Espey Manufacturing & Electronics' overall GF Score™ is 76/100 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 Espey Manufacturing & Electronics (ESP), the current Forward Rate of Return (Yacktman) % is 23.68% as of Mar. 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 Espey Manufacturing & Electronics (ESP) Overvalued in 2026?
Based on GuruFocus' analysis, Espey Manufacturing & Electronics stock appears to be overvalued.
The current stock price of $63.58 is trading 122.5% above its estimated GF Value™ of $28.58.
GuruFocus considers Espey Manufacturing & Electronics to be Significantly Overvalued.
Key valuation signals for ESP:
Forward Rate of Return (Yacktman) %: 23.68%
GF Value™: $28.58 vs. price of $63.58 (122.5% above fair value)
Industry Position: 223.1% above the Industrial Products median (#149 of 2149)
No single metric tells the full story. See the ESP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Espey Manufacturing & Electronics Corp is a power electronics design and OEM manufacturing company delivering products for military and severe environment applications. Its products include power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, UPS systems, and antennas. The applications of these products include AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power. Espey services include design and development to specification, build to specifications provided by the customer, build to print, design services, design studies, environmental testing services, metal fabrication, painting services, and development of automatic testing equipment.
76GF Score
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