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Cathay Financial Holding CoLSE:CFHS 55 Forward Rate of Return (Yacktman) % is 2.33% as of Dec. 2025, which is 76% below its 10-year median of 9.74. GuruFocus rates LSE:CFHS with a GF Score™ of 55/100 and a GF Value™ of $12.58. The stock has 9 warning signs investors should review. Among 279 Insurance companies, Cathay Financial Holding Co ranks worse than 80.65% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Cathay Financial Holding Co's forward rate of return for was 2.33%.
The historical rank and industry rank for Cathay Financial Holding Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LSE:CFHS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -0.56 Med: 9.74 Max: 36.45
Current: 1.98
During the past 13 years, Cathay Financial Holding Co's highest Forward Rate of Return was 36.45. The lowest was -0.56. And the median was 9.74.
LSE:CFHS's Forward Rate of Return (Yacktman) % is ranked worse than 80.65% of 279
companies
in the Insurance industry
Industry Median: 16.53
vs LSE:CFHS: 1.98
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.
Cathay Financial Holding Co (LSE:CFHS) 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 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.
Cathay Financial Holding Co Forward Rate of Return (Yacktman) % Related Terms
Cathay Financial Holding Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Cathay Financial Holding 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.
Cathay Financial Holding Co Forward Rate of Return (Yacktman) % Chart
LSE:CFHS vs MET, AFL, PRU: Forward Rate of Return (Yacktman) % Comparison
For the Insurance - Life subindustry, Cathay Financial Holding 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.
Cathay Financial Holding Co Forward Rate of Return (Yacktman) % vs Insurance Industry
For the Insurance industry and Financial Services sector, Cathay Financial Holding Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Cathay Financial Holding Co's Forward Rate of Return (Yacktman) % falls into.
Cathay Financial Holding 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 2.33% mean?
Cathay Financial Holding Co (LSE:CFHS) has a Forward Rate of Return (Yacktman) % of 2.33% as of Dec. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Cathay Financial Holding Co and its competitors. This is 76% below median its historical median of 9.74. According to the industry distribution chart, Cathay Financial Holding Co ranks #225 out of 279 companies in the Insurance industry, placing it in the top 80.6%.
Is Cathay Financial Holding Co's Forward Rate of Return (Yacktman) % too high?
Cathay Financial Holding Co's current Forward Rate of Return (Yacktman) % of 2.33% is 76% below median its 10-year median of 9.74. The Insurance industry median Forward Rate of Return (Yacktman) % is 16.53. Cathay Financial Holding Co's value of 2.33% is 85.9% below this industry median. Based on the distribution chart, Cathay Financial Holding Co ranks #225 out of 279 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Cathay Financial Holding Co has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Financial Holding Co's Forward Rate of Return (Yacktman) % compare to MET and AFL?
According to the Insurance industry distribution chart, Cathay Financial Holding Co ranks #225 out of 279 companies for Forward Rate of Return (Yacktman) %. This places Cathay Financial Holding Co in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 16.53. Cathay Financial Holding Co's value of 2.33% is 85.9% below this benchmark. While the company's 10-year median is 9.74 vs. the industry median of 16.53, Cathay Financial Holding Co has consistently been below 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 Insurance company?
The median Forward Rate of Return (Yacktman) % among Insurance companies is 16.53, based on 279 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. Cathay Financial Holding Co's current Forward Rate of Return (Yacktman) % of 2.33% is 85.9% below 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 Cathay Financial Holding Co and its competitors. For the Insurance industry, the median Forward Rate of Return (Yacktman) % is 16.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Financial Holding Co's current Forward Rate of Return (Yacktman) % is 2.33%, which is 76% below median its own 10-year median of 9.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Financial Holding Co stock overvalued right now?
Cathay Financial Holding Co (LSE:CFHS) has a current Forward Rate of Return (Yacktman) % of 2.33%. The stock's GF Value™ is $12.58, compared to a current price of $19.20 — trading 52.6% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 2.33%, which is 76% below median its 10-year median of 9.74 and 85.9% below the Insurance industry median of 16.53. Cathay Financial Holding Co's overall GF Score™ is 55/100 with 9 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 Cathay Financial Holding Co (LSE:CFHS), the current Forward Rate of Return (Yacktman) % is 2.33% as of Dec. 2025. 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 Cathay Financial Holding Co (LSE:CFHS) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Financial Holding Co stock appears to be overvalued.
The current stock price of $19.20 is trading 52.6% above its estimated GF Value™ of $12.58.
Key valuation signals for LSE:CFHS:
Forward Rate of Return (Yacktman) %: 2.33% (76% below median its 10-year median of 9.74)
GF Value™: $12.58 vs. price of $19.20 (52.6% above fair value)
Industry Position: 85.9% below the Insurance median (#225 of 279)
No single metric tells the full story. See the LSE:CFHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Financial Holding Co Ltd is a financial holding company. It has five operating segments Banking segment is engaged in permitted businesses of commercial banks; Life insurance segments is engaged in traditional insurance, investment-linked insurance and interest-sensitive sales of annuity insurance and providing financial planning services and policy loan services; Property insurance segment is engaged in fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance and other insurance; Securities segment is engaged in brokerage, dealership, and underwriting business; and Other operating segment of which majority of revenue is from Life insurance. Geographically revenue comes from Taiwan.
55GF Score
Get the complete analysis for LSE:CFHS
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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