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Establishment Labs HoldingsESTA +2.75%74 Forward Rate of Return (Yacktman) % is 0.00% as of Jun. 2026. GuruFocus rates ESTA with a GF Score™ of 74/100 and a GF Value™ of $64.19 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 378 Medical Devices & Instruments companies, Establishment Labs Holdings ranks worse than 264550% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Establishment Labs Holdings's forward rate of return for was 0.00%.
The historical rank and industry rank for Establishment Labs Holdings's Forward Rate of Return (Yacktman) % or its related term are showing as below:
During the past 10 years, Establishment Labs Holdings's highest Forward Rate of Return was 4.34. The lowest was -25.87. And the median was -20.92.
ESTA's Forward Rate of Return (Yacktman) % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 6.645 * Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
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.
Establishment Labs Holdings Forward Rate of Return (Yacktman) % Related Terms
Establishment Labs Holdings Forward Rate of Return (Yacktman) % Historical Data
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The historical data trend for Establishment Labs Holdings'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.
Establishment Labs Holdings Forward Rate of Return (Yacktman) % Chart
ESTA vs ALMR, NVCR, BFLY: Forward Rate of Return (Yacktman) % Comparison
For the Medical Devices subindustry, Establishment Labs Holdings'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.
Establishment Labs Holdings Forward Rate of Return (Yacktman) % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Establishment Labs Holdings's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Establishment Labs Holdings's Forward Rate of Return (Yacktman) % falls into.
Establishment Labs Holdings 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 0.00% mean?
Establishment Labs Holdings (ESTA) has a Forward Rate of Return (Yacktman) % of 0.00% 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 Establishment Labs Holdings and its competitors. According to the industry distribution chart, Establishment Labs Holdings ranks #999999 out of 378 companies in the Medical Devices & Instruments industry.
Is Establishment Labs Holdings' Forward Rate of Return (Yacktman) % too high?
Establishment Labs Holdings' current Forward Rate of Return (Yacktman) % is 0.00%. Based on the distribution chart, Establishment Labs Holdings ranks #999999 out of 378 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Establishment Labs Holdings has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Establishment Labs Holdings' Forward Rate of Return (Yacktman) % compare to ALMR and NVCR?
According to the Medical Devices & Instruments industry distribution chart, Establishment Labs Holdings ranks #999999 out of 378 companies for Forward Rate of Return (Yacktman) %. This places Establishment Labs Holdings in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 6.65. 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 6.65, 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. 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 Establishment Labs Holdings and its competitors. For the Medical Devices & Instruments industry, the median Forward Rate of Return (Yacktman) % is 6.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Establishment Labs Holdings's current Forward Rate of Return (Yacktman) % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Establishment Labs Holdings stock overvalued right now?
Based on GuruFocus' analysis, Establishment Labs Holdings (ESTA) is currently considered Modestly Overvalued. The stock's GF Value™ is $64.19, compared to a current price of $74.45 — trading 16% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 0.00%. Establishment Labs Holdings' overall GF Score™ is 74/100 with 1 warning sign 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 Establishment Labs Holdings (ESTA), the current Forward Rate of Return (Yacktman) % is 0.00% 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 Establishment Labs Holdings (ESTA) Overvalued in 2026?
Based on GuruFocus' analysis, Establishment Labs Holdings stock appears to be overvalued.
The current stock price of $74.45 is trading 16% above its estimated GF Value™ of $64.19.
GuruFocus considers Establishment Labs Holdings to be Modestly Overvalued.
Key valuation signals for ESTA:
Forward Rate of Return (Yacktman) %: 0.00%
GF Value™: $64.19 vs. price of $74.45 (16% above fair value)
No single metric tells the full story. See the ESTA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Establishment Labs Holdings Inc is a medical technology company engaged in offering medical devices and aesthetic products. It is involved in the designing, manufacturing, and marketing of silicone-filled breast and body-shaping implants. The company markets its products under Motiva implants Brand. It distributes its products to medical distributors; and physicians, hospitals, and clinics in the form of direct sales. Its geographical segments are Europe, Latin America, Asia-Pacific/Middle East, and Others.
74GF Score
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