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Weichai Power CoFRA:WI4 +2.57%79 Forward Rate of Return (Yacktman) % is 22.21% as of Jun. 2026, which is 18% above its 10-year median of 18.83. GuruFocus rates FRA:WI4 with a GF Score™ of 79/100 and a GF Value™ of €2.31 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 997 Vehicles & Parts companies, Weichai Power Co ranks better than 85.36% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Weichai Power Co's forward rate of return for was 22.21%.
The historical rank and industry rank for Weichai Power Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
FRA:WI4'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -1.72 Med: 18.83 Max: 35.27
Current: 22.3
During the past 13 years, Weichai Power Co's highest Forward Rate of Return was 35.27. The lowest was -1.72. And the median was 18.83.
FRA:WI4's Forward Rate of Return (Yacktman) % is ranked better than 85.36% of 997
companies
in the Vehicles & Parts industry
Industry Median: 10.34
vs FRA:WI4: 22.30
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.
Weichai Power Co (FRA:WI4) 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.
Weichai Power Co Forward Rate of Return (Yacktman) % Related Terms
Weichai Power Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Weichai Power 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.
Weichai Power Co Forward Rate of Return (Yacktman) % Chart
FRA:WI4 vs TSLA, GM, F: Forward Rate of Return (Yacktman) % Comparison
For the Auto Manufacturers subindustry, Weichai Power 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.
Weichai Power Co Forward Rate of Return (Yacktman) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Weichai Power Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Weichai Power Co's Forward Rate of Return (Yacktman) % falls into.
Weichai Power 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 22.21% mean?
Weichai Power Co (FRA:WI4) has a Forward Rate of Return (Yacktman) % of 22.21% 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 Weichai Power Co and its competitors. This is 18% above median its historical median of 18.83. According to the industry distribution chart, Weichai Power Co ranks #146 out of 997 companies in the Vehicles & Parts industry, placing it in the top 14.6%.
Is Weichai Power Co's Forward Rate of Return (Yacktman) % too high?
Weichai Power Co's current Forward Rate of Return (Yacktman) % of 22.21% is 18% above median its 10-year median of 18.83. The Vehicles & Parts industry median Forward Rate of Return (Yacktman) % is 10.34. Weichai Power Co's value of 22.21% is 114.8% above this industry median. Based on the distribution chart, Weichai Power Co ranks #146 out of 997 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Weichai Power Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Weichai Power Co's Forward Rate of Return (Yacktman) % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Weichai Power Co ranks #146 out of 997 companies for Forward Rate of Return (Yacktman) %. This places Weichai Power Co in the top 15% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 10.34. Weichai Power Co's value of 22.21% is 114.8% above this benchmark. While the company's 10-year median is 18.83 vs. the industry median of 10.34, Weichai Power 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 Vehicles & Parts company?
The median Forward Rate of Return (Yacktman) % among Vehicles & Parts companies is 10.34, based on 997 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. Weichai Power Co's current Forward Rate of Return (Yacktman) % of 22.21% is 114.8% 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 Weichai Power Co and its competitors. For the Vehicles & Parts industry, the median Forward Rate of Return (Yacktman) % is 10.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Weichai Power Co's current Forward Rate of Return (Yacktman) % is 22.21%, which is 18% above median its own 10-year median of 18.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Weichai Power Co stock overvalued right now?
Based on GuruFocus' analysis, Weichai Power Co (FRA:WI4) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.31, compared to a current price of €3.51 — trading 52% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 22.21%, which is 18% above median its 10-year median of 18.83 and 114.8% above the Vehicles & Parts industry median of 10.34. Weichai Power Co's overall GF Score™ is 79/100 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 Weichai Power Co (FRA:WI4), the current Forward Rate of Return (Yacktman) % is 22.21% 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 Weichai Power Co (FRA:WI4) Overvalued in 2026?
Based on GuruFocus' analysis, Weichai Power Co stock appears to be overvalued.
The current stock price of €3.51 is trading 52% above its estimated GF Value™ of €2.31.
GuruFocus considers Weichai Power Co to be Significantly Overvalued.
Key valuation signals for FRA:WI4:
Forward Rate of Return (Yacktman) %: 22.21% (18% above median its 10-year median of 18.83)
GF Value™: €2.31 vs. price of €3.51 (52% above fair value)
Industry Position: 114.8% above the Vehicles & Parts median (#146 of 997)
No single metric tells the full story. See the FRA:WI4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Weichai Power Co Ltd is an industrial technology company that offers vehicles and equipment manufacturing, and logistics and supply chain services in China. The operating segments of the company are; Engines segment which includes the manufacturing and sale of engines and related parts; Automobiles and automobile components which includes the manufacturing and sale of automobiles and automobile components other than Engines; Agricultural equipment includes the manufacturing and sale of agricultural equipment (complete machineries), agricultural machineries, agricultural vehicles, and related parts; and the Intelligent logistics segment which includes forklift trucks production, warehousing technology, and supply chain solution services.
79GF 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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