Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Coles GroupFRA:2OF +0.69%73 Forward Rate of Return (Yacktman) % is 7.35% as of Jun. 2025, which is 1% below its 10-year median of 7.46. GuruFocus rates FRA:2OF with a GF Score™ of 73/100 and a GF Value™ of €12.11. The stock has 8 warning signs investors should review. Among 221 Retail - Defensive companies, Coles Group ranks worse than 70.59% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Coles Group's forward rate of return for was 7.35%.
The historical rank and industry rank for Coles Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
FRA:2OF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 6.6 Med: 7.46 Max: 12.58
Current: 6.78
During the past 8 years, Coles Group's highest Forward Rate of Return was 12.58. The lowest was 6.60. And the median was 7.46.
FRA:2OF's Forward Rate of Return (Yacktman) % is ranked worse than 70.59% of 221
companies
in the Retail - Defensive industry
Industry Median: 14.11
vs FRA:2OF: 6.78
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.
Coles Group (FRA:2OF) 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.
Coles Group Forward Rate of Return (Yacktman) % Related Terms
Coles Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Coles 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.
Coles Group Forward Rate of Return (Yacktman) % Chart
FRA:2OF vs KR, SFM, ACI: Forward Rate of Return (Yacktman) % Comparison
For the Grocery Stores subindustry, Coles 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.
Coles Group Forward Rate of Return (Yacktman) % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Coles Group's Forward Rate of Return (Yacktman) % falls into.
Coles 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).
Coles Group's Forward Rate of Return of Jun. 2025 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.66116667
/
11.5
+
0.0057
=
6.32 %
* 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 7.35% mean?
Coles Group (FRA:2OF) has a Forward Rate of Return (Yacktman) % of 7.35% as of Jun. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Coles Group and its competitors. This is near median its historical median of 7.46. Over the past decade, Coles Group's Forward Rate of Return (Yacktman) % has ranged from 6.60 to 12.58. According to the industry distribution chart, Coles Group ranks #156 out of 221 companies in the Retail - Defensive industry, placing it in the top 70.6%.
Is Coles Group's Forward Rate of Return (Yacktman) % too high?
Coles Group's current Forward Rate of Return (Yacktman) % of 7.35% is near median its 10-year median of 7.46. Over the past 10 years, this metric has ranged from a low of 6.60 to a high of 12.58. The Retail - Defensive industry median Forward Rate of Return (Yacktman) % is 14.11. Coles Group's value of 7.35% is 47.9% below this industry median. Based on the distribution chart, Coles Group ranks #156 out of 221 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Coles Group has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Coles Group's Forward Rate of Return (Yacktman) % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #156 out of 221 companies for Forward Rate of Return (Yacktman) %. This places Coles Group in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 14.11. Coles Group's value of 7.35% is 47.9% below this benchmark. Historically, Coles Group's own Forward Rate of Return (Yacktman) % has ranged from 6.60 to 12.58 over the past decade. While the company's 10-year median is 7.46 vs. the industry median of 14.11, Coles Group has consistently been below 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 - Defensive company?
The median Forward Rate of Return (Yacktman) % among Retail - Defensive companies is 14.11, based on 221 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. Coles Group's current Forward Rate of Return (Yacktman) % of 7.35% is 47.9% below 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 Coles Group and its competitors. For the Retail - Defensive industry, the median Forward Rate of Return (Yacktman) % is 14.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current Forward Rate of Return (Yacktman) % is 7.35%, which is near median its own 10-year median of 7.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Coles Group (FRA:2OF) has a current Forward Rate of Return (Yacktman) % of 7.35%. The stock's GF Value™ is €12.11, compared to a current price of €14.60 — trading 20.6% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 7.35%, which is near median its 10-year median of 7.46 and 47.9% below the Retail - Defensive industry median of 14.11. Coles Group's overall GF Score™ is 73/100 with 8 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 Coles Group (FRA:2OF), the current Forward Rate of Return (Yacktman) % is 7.35% as of Jun. 2025. 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 Coles Group (FRA:2OF) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of €14.60 is trading 20.6% above its estimated GF Value™ of €12.11.
Key valuation signals for FRA:2OF:
Forward Rate of Return (Yacktman) %: 7.35% (near median its 10-year median of 7.46)
GF Value™: €12.11 vs. price of €14.60 (20.6% above fair value)
Industry Position: 47.9% below the Retail - Defensive median (#156 of 221)
No single metric tells the full story. See the FRA:2OF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
73GF Score
Get the complete analysis for FRA:2OF
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:2OF has been successfully added to your 
