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Element SolutionsFRA:PLQ +1.35%83 Forward Rate of Return (Yacktman) % is 3.49% as of Jun. 2026, which is 68% below its 10-year median of 10.83. GuruFocus rates FRA:PLQ with a GF Score™ of 83/100 and a GF Value™ of €30.21 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,254 Chemicals companies, Element Solutions ranks better than 51.75% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Element Solutions's forward rate of return for was 3.49%.
The historical rank and industry rank for Element Solutions's Forward Rate of Return (Yacktman) % or its related term are showing as below:
FRA:PLQ'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -0.86 Med: 10.83 Max: 26.77
Current: 4.22
During the past 13 years, Element Solutions's highest Forward Rate of Return was 26.77. The lowest was -0.86. And the median was 10.83.
FRA:PLQ's Forward Rate of Return (Yacktman) % is ranked better than 51.75% of 1254
companies
in the Chemicals industry
Industry Median: 3.5
vs FRA:PLQ: 4.22
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.
Element Solutions (FRA:PLQ) 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.
Element Solutions Forward Rate of Return (Yacktman) % Related Terms
Element Solutions Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Element Solutions'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.
Element Solutions Forward Rate of Return (Yacktman) % Chart
FRA:PLQ vs NEU, EMN, AXTA: Forward Rate of Return (Yacktman) % Comparison
For the Specialty Chemicals subindustry, Element Solutions'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.
Element Solutions Forward Rate of Return (Yacktman) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Element Solutions's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Element Solutions's Forward Rate of Return (Yacktman) % falls into.
Element Solutions 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 3.49% mean?
Element Solutions (FRA:PLQ) has a Forward Rate of Return (Yacktman) % of 3.49% 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 Element Solutions and its competitors. This is 68% below median its historical median of 10.83. According to the industry distribution chart, Element Solutions ranks #605 out of 1254 companies in the Chemicals industry, placing it in the top 48.2%.
Is Element Solutions' Forward Rate of Return (Yacktman) % too high?
Element Solutions' current Forward Rate of Return (Yacktman) % of 3.49% is 68% below median its 10-year median of 10.83. The Chemicals industry median Forward Rate of Return (Yacktman) % is 3.50. Element Solutions' value of 3.49% is 0.3% below this industry median. Based on the distribution chart, Element Solutions ranks #605 out of 1254 companies in the Chemicals industry, which is above the industry midpoint. Overall, Element Solutions has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Element Solutions' Forward Rate of Return (Yacktman) % compare to NEU and EMN?
According to the Chemicals industry distribution chart, Element Solutions ranks #605 out of 1254 companies for Forward Rate of Return (Yacktman) %. This puts Element Solutions in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 3.50. Element Solutions' value of 3.49% is 0.3% below this benchmark. While the company's 10-year median is 10.83 vs. the industry median of 3.50, Element Solutions 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 Chemicals company?
The median Forward Rate of Return (Yacktman) % among Chemicals companies is 3.50, based on 1,254 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. Element Solutions's current Forward Rate of Return (Yacktman) % of 3.49% is 0.3% 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 Element Solutions and its competitors. For the Chemicals industry, the median Forward Rate of Return (Yacktman) % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Element Solutions's current Forward Rate of Return (Yacktman) % is 3.49%, which is 68% below median its own 10-year median of 10.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Element Solutions stock overvalued right now?
Based on GuruFocus' analysis, Element Solutions (FRA:PLQ) is currently considered Fairly Valued. The stock's GF Value™ is €30.21, compared to a current price of €30.00 — trading 0.7% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 3.49%, which is 68% below median its 10-year median of 10.83 and 0.3% below the Chemicals industry median of 3.50. Element Solutions' overall GF Score™ is 83/100 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 Element Solutions (FRA:PLQ), the current Forward Rate of Return (Yacktman) % is 3.49% 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 Element Solutions (FRA:PLQ) Overvalued in 2026?
Based on GuruFocus' analysis, Element Solutions stock appears to be undervalued.
The current stock price of €30.00 is trading 0.7% below its estimated GF Value™ of €30.21.
GuruFocus considers Element Solutions to be Fairly Valued.
Key valuation signals for FRA:PLQ:
Forward Rate of Return (Yacktman) %: 3.49% (68% below median its 10-year median of 10.83)
GF Value™: €30.21 vs. price of €30.00 (0.7% below fair value)
Industry Position: 0.3% below the Chemicals median (#605 of 1254)
No single metric tells the full story. See the FRA:PLQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Element Solutions Inc is a specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. The company's reportable segments are Electronics and Industrial & Specialty. The Electronics segment, which generates maximum revenue, researches, formulates, and sells specialty chemicals and process technologies for all types of electronics hardware, from complex printed circuit board designs to semiconductor packaging. This segment's wet chemicals for metallization, surface treatments, and solderable finishes form the physical circuitry pathways, and its assembly materials, such as solder, pastes, fluxes, and adhesives, join those pathways together.
83GF 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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