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Lument Finance TrustLFT +1.09%38 Forward Rate of Return (Yacktman) % is 36.08% as of Jun. 2026, which is 246% above its 10-year median of 10.44. GuruFocus rates LFT with a GF Score™ of 38/100 and a GF Value™ of $1.18 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 634 REITs companies, Lument Finance Trust ranks better than 97.16% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Lument Finance Trust's forward rate of return for was 36.08%.
The historical rank and industry rank for Lument Finance Trust's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LFT'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -8.37 Med: 10.44 Max: 52.69
Current: 47.69
During the past 13 years, Lument Finance Trust's highest Forward Rate of Return was 52.69. The lowest was -8.37. And the median was 10.44.
LFT's Forward Rate of Return (Yacktman) % is ranked better than 97.16% of 634
companies
in the REITs industry
Industry Median: 8.3
vs LFT: 47.69
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.
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 Book Value 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.
Lument Finance Trust Forward Rate of Return (Yacktman) % Related Terms
Lument Finance Trust Forward Rate of Return (Yacktman) % Historical Data
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The historical data trend for Lument Finance Trust'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.
Lument Finance Trust Forward Rate of Return (Yacktman) % Chart
LFT vs SACH, LOAN, GPMT: Forward Rate of Return (Yacktman) % Comparison
For the REIT - Mortgage subindustry, Lument Finance Trust'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.
Lument Finance Trust Forward Rate of Return (Yacktman) % vs REITs Industry
For the REITs industry and Real Estate sector, Lument Finance Trust's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Lument Finance Trust's Forward Rate of Return (Yacktman) % falls into.
Lument Finance Trust 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 36.08% mean?
Lument Finance Trust (LFT) has a Forward Rate of Return (Yacktman) % of 36.08% 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 Lument Finance Trust and its competitors. This is 246% above median its historical median of 10.44. According to the industry distribution chart, Lument Finance Trust ranks #18 out of 634 companies in the REITs industry, placing it in the top 2.8%.
Is Lument Finance Trust's Forward Rate of Return (Yacktman) % too high?
Lument Finance Trust's current Forward Rate of Return (Yacktman) % of 36.08% is 246% above median its 10-year median of 10.44. The REITs industry median Forward Rate of Return (Yacktman) % is 8.30. Lument Finance Trust's value of 36.08% is 334.7% above this industry median. Based on the distribution chart, Lument Finance Trust ranks #18 out of 634 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Lument Finance Trust has a GF Score™ of 38/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lument Finance Trust's Forward Rate of Return (Yacktman) % compare to SACH and LOAN?
According to the REITs industry distribution chart, Lument Finance Trust ranks #18 out of 634 companies for Forward Rate of Return (Yacktman) %. This places Lument Finance Trust in the top 3% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 8.30. Lument Finance Trust's value of 36.08% is 334.7% above this benchmark. While the company's 10-year median is 10.44 vs. the industry median of 8.30, Lument Finance Trust 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 REITs company?
The median Forward Rate of Return (Yacktman) % among REITs companies is 8.30, based on 634 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. Lument Finance Trust's current Forward Rate of Return (Yacktman) % of 36.08% is 334.7% 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 Lument Finance Trust and its competitors. For the REITs industry, the median Forward Rate of Return (Yacktman) % is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lument Finance Trust's current Forward Rate of Return (Yacktman) % is 36.08%, which is 246% above median its own 10-year median of 10.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lument Finance Trust stock overvalued right now?
Based on GuruFocus' analysis, Lument Finance Trust (LFT) is currently considered Possible Value Trap. The stock's GF Value™ is $1.18, compared to a current price of $0.72 — trading 38.9% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 36.08%, which is 246% above median its 10-year median of 10.44 and 334.7% above the REITs industry median of 8.30. Lument Finance Trust's overall GF Score™ is 38/100 with 3 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 Lument Finance Trust (LFT), the current Forward Rate of Return (Yacktman) % is 36.08% 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 Lument Finance Trust (LFT) Overvalued in 2026?
Based on GuruFocus' analysis, Lument Finance Trust stock appears to be undervalued.
The current stock price of $0.72 is trading 38.9% below its estimated GF Value™ of $1.18.
GuruFocus considers Lument Finance Trust to be Possible Value Trap.
Key valuation signals for LFT:
Forward Rate of Return (Yacktman) %: 36.08% (246% above median its 10-year median of 10.44)
GF Value™: $1.18 vs. price of $0.72 (38.9% below fair value)
Industry Position: 334.7% above the REITs median (#18 of 634)
No single metric tells the full story. See the LFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lument Finance Trust Inc operates as a real estate investment trust. The company is engaged in investment, financing, and management of a portfolio of commercial real estate debt investments. It invests in transitional floating-rate commercial real estate mortgage loans, mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed-rate loans, construction loans, and other CRE debt instruments.
38GF Score
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