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Hammond Power SolutionsHMDPF +0.90%91 Forward Rate of Return (Yacktman) % is 20.37% as of Jun. 2026, which is 2% below its 10-year median of 20.85. GuruFocus rates HMDPF with a GF Score™ of 91/100 and a GF Value™ of $120.65 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,152 Industrial Products companies, Hammond Power Solutions ranks better than 84.76% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Hammond Power Solutions's forward rate of return for was 20.37%.
The historical rank and industry rank for Hammond Power Solutions's Forward Rate of Return (Yacktman) % or its related term are showing as below:
HMDPF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 1.22 Med: 20.85 Max: 27.37
Current: 20.51
During the past 13 years, Hammond Power Solutions's highest Forward Rate of Return was 27.37. The lowest was 1.22. And the median was 20.85.
HMDPF's Forward Rate of Return (Yacktman) % is ranked better than 84.76% of 2152
companies
in the Industrial Products industry
Industry Median: 7.595
vs HMDPF: 20.51
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.
Hammond Power Solutions (OTCPK:HMDPF) 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.
Hammond Power Solutions Forward Rate of Return (Yacktman) % Related Terms
Hammond Power Solutions Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Hammond Power 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.
Hammond Power Solutions Forward Rate of Return (Yacktman) % Chart
HMDPF vs VRT, BE: Forward Rate of Return (Yacktman) % Comparison
For the Electrical Equipment & Parts subindustry, Hammond Power 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.
Hammond Power Solutions Forward Rate of Return (Yacktman) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's Forward Rate of Return (Yacktman) % falls into.
Hammond Power 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 20.37% mean?
Hammond Power Solutions (HMDPF) has a Forward Rate of Return (Yacktman) % of 20.37% 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 Hammond Power Solutions and its competitors. This is near median its historical median of 20.85. Over the past decade, Hammond Power Solutions' Forward Rate of Return (Yacktman) % has ranged from 1.22 to 27.37. According to the industry distribution chart, Hammond Power Solutions ranks #328 out of 2152 companies in the Industrial Products industry, placing it in the top 15.2%.
Is Hammond Power Solutions' Forward Rate of Return (Yacktman) % too high?
Hammond Power Solutions' current Forward Rate of Return (Yacktman) % of 20.37% is near median its 10-year median of 20.85. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 27.37. The Industrial Products industry median Forward Rate of Return (Yacktman) % is 7.60. Hammond Power Solutions' value of 20.37% is 168.2% above this industry median. Based on the distribution chart, Hammond Power Solutions ranks #328 out of 2152 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Hammond Power Solutions has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hammond Power Solutions' Forward Rate of Return (Yacktman) % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Power Solutions ranks #328 out of 2152 companies for Forward Rate of Return (Yacktman) %. This places Hammond Power Solutions in the top 15% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 7.60. Hammond Power Solutions' value of 20.37% is 168.2% above this benchmark. Historically, Hammond Power Solutions' own Forward Rate of Return (Yacktman) % has ranged from 1.22 to 27.37 over the past decade. While the company's 10-year median is 20.85 vs. the industry median of 7.60, Hammond Power Solutions 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 an Industrial Products company?
The median Forward Rate of Return (Yacktman) % among Industrial Products companies is 7.60, based on 2,152 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. Hammond Power Solutions's current Forward Rate of Return (Yacktman) % of 20.37% is 168.2% 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 Hammond Power Solutions and its competitors. For the Industrial Products industry, the median Forward Rate of Return (Yacktman) % is 7.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Power Solutions's current Forward Rate of Return (Yacktman) % is 20.37%, which is near median its own 10-year median of 20.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hammond Power Solutions stock overvalued right now?
Based on GuruFocus' analysis, Hammond Power Solutions (HMDPF) is currently considered Significantly Overvalued. The stock's GF Value™ is $120.65, compared to a current price of $181.12 — trading 50.1% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 20.37%, which is near median its 10-year median of 20.85 and 168.2% above the Industrial Products industry median of 7.60. Hammond Power Solutions' overall GF Score™ is 91/100 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 Hammond Power Solutions (HMDPF), the current Forward Rate of Return (Yacktman) % is 20.37% 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 Hammond Power Solutions (HMDPF) Overvalued in 2026?
Based on GuruFocus' analysis, Hammond Power Solutions stock appears to be overvalued.
The current stock price of $181.12 is trading 50.1% above its estimated GF Value™ of $120.65.
GuruFocus considers Hammond Power Solutions to be Significantly Overvalued.
Key valuation signals for HMDPF:
Forward Rate of Return (Yacktman) %: 20.37% (near median its 10-year median of 20.85)
GF Value™: $120.65 vs. price of $181.12 (50.1% above fair value)
Industry Position: 168.2% above the Industrial Products median (#328 of 2152)
No single metric tells the full story. See the HMDPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hammond Power Solutions Inc is engaged in designing and manufacturing custom electrical magnetics, cast resin, custom liquid-filled distribution and power transformers, and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico and India. The company operates in various geographical markets including Canada, the United States, Mexico, and India from which it derives majority revenue in the United States and Mexico.
91GF Score
Get the complete analysis for HMDPF
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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