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IES HoldingsIESC +0.55%85 Forward Rate of Return (Yacktman) % is 21.17% as of Mar. 2026, which is 9% below its 10-year median of 23.14. GuruFocus rates IESC with a GF Score™ of 85/100 and a GF Value™ of $265.11 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,295 Construction companies, IES Holdings ranks better than 78.84% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. IES Holdings's forward rate of return for was 21.17%.
The historical rank and industry rank for IES Holdings's Forward Rate of Return (Yacktman) % or its related term are showing as below:
IESC'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 20.75 Med: 23.14 Max: 26.46
Current: 20.91
During the past 13 years, IES Holdings's highest Forward Rate of Return was 26.46. The lowest was 20.75. And the median was 23.14.
IESC's Forward Rate of Return (Yacktman) % is ranked better than 78.84% of 1295
companies
in the Construction industry
Industry Median: 8.94
vs IESC: 20.91
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.
IES Holdings (NAS:IESC) 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.
IES Holdings Forward Rate of Return (Yacktman) % Related Terms
IES Holdings Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for IES Holdings'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.
IES Holdings Forward Rate of Return (Yacktman) % Chart
IESC vs DY, J, BLD: Forward Rate of Return (Yacktman) % Comparison
For the Engineering & Construction subindustry, IES Holdings'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.
IES Holdings Forward Rate of Return (Yacktman) % vs Construction Industry
For the Construction industry and Industrials sector, IES Holdings's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where IES Holdings's Forward Rate of Return (Yacktman) % falls into.
IES Holdings 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).
IES Holdings's Forward Rate of Return of Mar. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
5.59561905
/
476.47
+
0.2
=
21.17 %
* 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 21.17% mean?
IES Holdings (IESC) has a Forward Rate of Return (Yacktman) % of 21.17% 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 IES Holdings and its competitors. This is near median its historical median of 23.14. Over the past decade, IES Holdings' Forward Rate of Return (Yacktman) % has ranged from 20.75 to 26.46. According to the industry distribution chart, IES Holdings ranks #274 out of 1295 companies in the Construction industry, placing it in the top 21.2%.
Is IES Holdings' Forward Rate of Return (Yacktman) % too high?
IES Holdings' current Forward Rate of Return (Yacktman) % of 21.17% is near median its 10-year median of 23.14. Over the past 10 years, this metric has ranged from a low of 20.75 to a high of 26.46. The Construction industry median Forward Rate of Return (Yacktman) % is 8.94. IES Holdings' value of 21.17% is 136.8% above this industry median. Based on the distribution chart, IES Holdings ranks #274 out of 1295 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, IES Holdings has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IES Holdings' Forward Rate of Return (Yacktman) % compare to DY and J?
According to the Construction industry distribution chart, IES Holdings ranks #274 out of 1295 companies for Forward Rate of Return (Yacktman) %. This places IES Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 8.94. IES Holdings' value of 21.17% is 136.8% above this benchmark. Historically, IES Holdings' own Forward Rate of Return (Yacktman) % has ranged from 20.75 to 26.46 over the past decade. While the company's 10-year median is 23.14 vs. the industry median of 8.94, IES Holdings 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 Construction company?
The median Forward Rate of Return (Yacktman) % among Construction companies is 8.94, based on 1,295 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. IES Holdings's current Forward Rate of Return (Yacktman) % of 21.17% is 136.8% 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 IES Holdings and its competitors. For the Construction industry, the median Forward Rate of Return (Yacktman) % is 8.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IES Holdings's current Forward Rate of Return (Yacktman) % is 21.17%, which is near median its own 10-year median of 23.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IES Holdings stock overvalued right now?
Based on GuruFocus' analysis, IES Holdings (IESC) is currently considered Significantly Overvalued. The stock's GF Value™ is $265.11, compared to a current price of $613.26 — trading 131.3% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 21.17%, which is near median its 10-year median of 23.14 and 136.8% above the Construction industry median of 8.94. IES Holdings' overall GF Score™ is 85/100 with 1 warning sign 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 IES Holdings (IESC), the current Forward Rate of Return (Yacktman) % is 21.17% 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 IES Holdings (IESC) Overvalued in 2026?
Based on GuruFocus' analysis, IES Holdings stock appears to be overvalued.
The current stock price of $613.26 is trading 131.3% above its estimated GF Value™ of $265.11.
GuruFocus considers IES Holdings to be Significantly Overvalued.
Key valuation signals for IESC:
Forward Rate of Return (Yacktman) %: 21.17% (near median its 10-year median of 23.14)
GF Value™: $265.11 vs. price of $613.26 (131.3% above fair value)
Industry Position: 136.8% above the Construction median (#274 of 1295)
No single metric tells the full story. See the IESC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IES Holdings Inc owns and manages subsidiaries that design and installs integrated electrical and technology systems and provide infrastructure products and services. It has four business segments; Communications, Residential, Infrastructure Solutions, and Commercial & Industrial. The majority of the revenue for the company is generated from its Residential segment in which the company provides electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation, and air conditioning (HVAC) and plumbing installation services. This segment also provides services for installing residential solar power, both for new construction and existing residences.
85GF 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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