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L.B. Foster CoFSTR +2.26%70 Forward Rate of Return (Yacktman) % is 13.79% as of Mar. 2026, which is 149% above its 10-year median of 5.54. GuruFocus rates FSTR with a GF Scoreâ„¢ of 70/100 and a GF Valueâ„¢ of $25.01 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 754 Transportation companies, L.B. Foster Co ranks better than 56.1% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. L.B. Foster Co's forward rate of return for was 13.79%.
The historical rank and industry rank for L.B. Foster Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
FSTR'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -7.1 Med: 5.54 Max: 17.08
Current: 13.16
During the past 13 years, L.B. Foster Co's highest Forward Rate of Return was 17.08. The lowest was -7.10. And the median was 5.54.
FSTR's Forward Rate of Return (Yacktman) % is ranked better than 56.1% of 754
companies
in the Transportation industry
Industry Median: 10.755
vs FSTR: 13.16
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.
L.B. Foster Co (NAS:FSTR) 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.
L.B. Foster Co Forward Rate of Return (Yacktman) % Related Terms
L.B. Foster Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for L.B. Foster 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.
L.B. Foster Co Forward Rate of Return (Yacktman) % Chart
FSTR vs RAIL, SWVL, RVSN: Forward Rate of Return (Yacktman) % Comparison
For the Railroads subindustry, L.B. Foster 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.
L.B. Foster Co Forward Rate of Return (Yacktman) % vs Transportation Industry
For the Transportation industry and Industrials sector, L.B. Foster Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where L.B. Foster Co's Forward Rate of Return (Yacktman) % falls into.
L.B. Foster 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 13.79% mean?
L.B. Foster Co (FSTR) has a Forward Rate of Return (Yacktman) % of 13.79% 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 L.B. Foster Co and its competitors. This is 149% above median its historical median of 5.54. According to the industry distribution chart, L.B. Foster Co ranks #331 out of 754 companies in the Transportation industry, placing it in the top 43.9%.
Is L.B. Foster Co's Forward Rate of Return (Yacktman) % too high?
L.B. Foster Co's current Forward Rate of Return (Yacktman) % of 13.79% is 149% above median its 10-year median of 5.54. The Transportation industry median Forward Rate of Return (Yacktman) % is 10.76. L.B. Foster Co's value of 13.79% is 28.2% above this industry median. Based on the distribution chart, L.B. Foster Co ranks #331 out of 754 companies in the Transportation industry, which is above the industry midpoint. Overall, L.B. Foster Co has a GF Scoreâ„¢ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does L.B. Foster Co's Forward Rate of Return (Yacktman) % compare to RAIL and SWVL?
According to the Transportation industry distribution chart, L.B. Foster Co ranks #331 out of 754 companies for Forward Rate of Return (Yacktman) %. This puts L.B. Foster Co in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 10.76. L.B. Foster Co's value of 13.79% is 28.2% above this benchmark. While the company's 10-year median is 5.54 vs. the industry median of 10.76, L.B. Foster 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 Transportation company?
The median Forward Rate of Return (Yacktman) % among Transportation companies is 10.76, based on 754 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. L.B. Foster Co's current Forward Rate of Return (Yacktman) % of 13.79% is 28.2% 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 L.B. Foster Co and its competitors. For the Transportation industry, the median Forward Rate of Return (Yacktman) % is 10.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L.B. Foster Co's current Forward Rate of Return (Yacktman) % is 13.79%, which is 149% above median its own 10-year median of 5.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L.B. Foster Co stock overvalued right now?
Based on GuruFocus' analysis, L.B. Foster Co (FSTR) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.01, compared to a current price of $41.15 — trading 64.5% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 13.79%, which is 149% above median its 10-year median of 5.54 and 28.2% above the Transportation industry median of 10.76. L.B. Foster Co's overall GF Score™ is 70/100 with 4 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 L.B. Foster Co (FSTR), the current Forward Rate of Return (Yacktman) % is 13.79% 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 L.B. Foster Co (FSTR) Overvalued in 2026?
Based on GuruFocus' analysis, L.B. Foster Co stock appears to be overvalued.
The current stock price of $41.15 is trading 64.5% above its estimated GF Value™ of $25.01.
GuruFocus considers L.B. Foster Co to be Significantly Overvalued.
Key valuation signals for FSTR:
Forward Rate of Return (Yacktman) %: 13.79% (149% above median its 10-year median of 5.54)
GF Value™: $25.01 vs. price of $41.15 (64.5% above fair value)
Industry Position: 28.2% above the Transportation median (#331 of 754)
No single metric tells the full story. See the FSTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L.B. Foster Co is a technology solutions provider of products and services for the rail and infrastructure markets. The company has two reporting segments: Rail, Technologies, and Services (Rail); and Infrastructure Solutions (Infrastructure). Maximum revenue is generated from the Rail segment, which is comprised of several manufacturing and distribution businesses that provide products and services for freight and passenger railroads and industrial companies throughout the world. The Infrastructure segment offers engineered precast concrete solutions, as well as fabricated bridge, protective pipe coating, and pipe threading offerings across North America. Geographically, the company generates maximum revenue from the United States, followed by Canada, the UK, and other markets.
70GF Score
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