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Hovnanian EnterprisesHOVVB 74 Forward Rate of Return (Yacktman) % is 14.47% as of Apr. 2026, which is 54% below its 10-year median of 31.37. GuruFocus rates HOVVB with a GF Score™ of 74/100 and a GF Value™ of $106.98. The stock has 7 warning signs investors should review. Among 72 Homebuilding & Construction companies, Hovnanian Enterprises ranks better than 66.67% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Hovnanian Enterprises's forward rate of return for was 14.47%.
The historical rank and industry rank for Hovnanian Enterprises's Forward Rate of Return (Yacktman) % or its related term are showing as below:
HOVVB'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -20.63 Med: 31.37 Max: 85.59
Current: 11.02
During the past 13 years, Hovnanian Enterprises's highest Forward Rate of Return was 85.59. The lowest was -20.63. And the median was 31.37.
HOVVB's Forward Rate of Return (Yacktman) % is ranked better than 66.67% of 72
companies
in the Homebuilding & Construction industry
Industry Median: 3.005
vs HOVVB: 11.02
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.
Hovnanian Enterprises (OTCPK:HOVVB) 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.
Hovnanian Enterprises Forward Rate of Return (Yacktman) % Related Terms
Hovnanian Enterprises Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Hovnanian Enterprises'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.
Hovnanian Enterprises Forward Rate of Return (Yacktman) % Chart
HOVVB vs LEGH, BZH, LGIH: Forward Rate of Return (Yacktman) % Comparison
For the Residential Construction subindustry, Hovnanian Enterprises'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.
Hovnanian Enterprises Forward Rate of Return (Yacktman) % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Hovnanian Enterprises's Forward Rate of Return (Yacktman) % falls into.
Hovnanian Enterprises 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 14.47% mean?
Hovnanian Enterprises (HOVVB) has a Forward Rate of Return (Yacktman) % of 14.47% as of Apr. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Hovnanian Enterprises and its competitors. This is 54% below median its historical median of 31.37. According to the industry distribution chart, Hovnanian Enterprises ranks #24 out of 72 companies in the Homebuilding & Construction industry, placing it in the top 33.3%.
Is Hovnanian Enterprises' Forward Rate of Return (Yacktman) % too high?
Hovnanian Enterprises' current Forward Rate of Return (Yacktman) % of 14.47% is 54% below median its 10-year median of 31.37. The Homebuilding & Construction industry median Forward Rate of Return (Yacktman) % is 3.01. Hovnanian Enterprises' value of 14.47% is 381.5% above this industry median. Based on the distribution chart, Hovnanian Enterprises ranks #24 out of 72 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Hovnanian Enterprises has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' Forward Rate of Return (Yacktman) % compare to LEGH and BZH?
According to the Homebuilding & Construction industry distribution chart, Hovnanian Enterprises ranks #24 out of 72 companies for Forward Rate of Return (Yacktman) %. This puts Hovnanian Enterprises in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 3.01. Hovnanian Enterprises' value of 14.47% is 381.5% above this benchmark. While the company's 10-year median is 31.37 vs. the industry median of 3.01, Hovnanian Enterprises 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 Homebuilding & Construction company?
The median Forward Rate of Return (Yacktman) % among Homebuilding & Construction companies is 3.01, based on 72 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. Hovnanian Enterprises's current Forward Rate of Return (Yacktman) % of 14.47% is 381.5% 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 Hovnanian Enterprises and its competitors. For the Homebuilding & Construction industry, the median Forward Rate of Return (Yacktman) % is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hovnanian Enterprises's current Forward Rate of Return (Yacktman) % is 14.47%, which is 54% below median its own 10-year median of 31.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hovnanian Enterprises stock overvalued right now?
Hovnanian Enterprises (HOVVB) has a current Forward Rate of Return (Yacktman) % of 14.47%. The stock's GF Value™ is $106.98, compared to a current price of $110.00 — trading 2.8% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 14.47%, which is 54% below median its 10-year median of 31.37 and 381.5% above the Homebuilding & Construction industry median of 3.01. Hovnanian Enterprises' overall GF Score™ is 74/100 with 7 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 Hovnanian Enterprises (HOVVB), the current Forward Rate of Return (Yacktman) % is 14.47% as of Apr. 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 Hovnanian Enterprises (HOVVB) Overvalued in 2026?
Based on GuruFocus' analysis, Hovnanian Enterprises stock appears to be overvalued.
The current stock price of $110.00 is trading 2.8% above its estimated GF Value™ of $106.98.
Key valuation signals for HOVVB:
Forward Rate of Return (Yacktman) %: 14.47% (54% below median its 10-year median of 31.37)
GF Value™: $106.98 vs. price of $110.00 (2.8% above fair value)
Industry Position: 381.5% above the Homebuilding & Construction median (#24 of 72)
No single metric tells the full story. See the HOVVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hovnanian Enterprises Inc conducts all of its homebuilding and financial services operations. The company designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes in planned residential developments. It has two distinct operations: homebuilding and financial services. Its homebuilding operations are divided geographically into three segments: Northeast, which includes Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, and West Virginia; Southeast, which includes Florida, Georgia, and South Carolina; and West, which includes Arizona, California, and Texas. The firm generates maximum revenue from the West Segment.
74GF Score
Get the complete analysis for HOVVB
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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