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Smiths NewsLSE:SNWS +2.69%41 Forward Rate of Return (Yacktman) % is 25.53% as of Aug. 2025, which is 13% above its 10-year median of 22.69. GuruFocus rates LSE:SNWS with a GF Score™ of 41/100 and a GF Value™ of £0.53 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 636 Media - Diversified companies, Smiths News ranks better than 81.6% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Smiths News's forward rate of return for was 25.53%.
The historical rank and industry rank for Smiths News's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LSE:SNWS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 11.54 Med: 22.69 Max: 56.75
Current: 23.72
During the past 13 years, Smiths News's highest Forward Rate of Return was 56.75. The lowest was 11.54. And the median was 22.69.
LSE:SNWS's Forward Rate of Return (Yacktman) % is ranked better than 81.6% of 636
companies
in the Media - Diversified industry
Industry Median: 6.25
vs LSE:SNWS: 23.72
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.
Smiths News (LSE:SNWS) 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.
Smiths News Forward Rate of Return (Yacktman) % Related Terms
Smiths News Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Smiths News'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.
Smiths News Forward Rate of Return (Yacktman) % Chart
LSE:SNWS vs NYT, WLY: Forward Rate of Return (Yacktman) % Comparison
For the Publishing subindustry, Smiths News'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.
Smiths News Forward Rate of Return (Yacktman) % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Smiths News's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Smiths News's Forward Rate of Return (Yacktman) % falls into.
Smiths News 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).
Smiths News's Forward Rate of Return of Aug. 2025 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.131
/
0.58
+
0.0434
=
26.93 %
* 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 25.53% mean?
Smiths News (LSE:SNWS) has a Forward Rate of Return (Yacktman) % of 25.53% as of Aug. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Smiths News and its competitors. This is 13% above median its historical median of 22.69. Over the past decade, Smiths News' Forward Rate of Return (Yacktman) % has ranged from 11.54 to 56.75. According to the industry distribution chart, Smiths News ranks #117 out of 636 companies in the Media - Diversified industry, placing it in the top 18.4%.
Is Smiths News' Forward Rate of Return (Yacktman) % too high?
Smiths News' current Forward Rate of Return (Yacktman) % of 25.53% is 13% above median its 10-year median of 22.69. Over the past 10 years, this metric has ranged from a low of 11.54 to a high of 56.75. The Media - Diversified industry median Forward Rate of Return (Yacktman) % is 6.25. Smiths News' value of 25.53% is 308.5% above this industry median. Based on the distribution chart, Smiths News ranks #117 out of 636 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Smiths News has a GF Score™ of 41/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths News' Forward Rate of Return (Yacktman) % compare to NYT and WLY?
According to the Media - Diversified industry distribution chart, Smiths News ranks #117 out of 636 companies for Forward Rate of Return (Yacktman) %. This places Smiths News in the top 18% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 6.25. Smiths News' value of 25.53% is 308.5% above this benchmark. Historically, Smiths News' own Forward Rate of Return (Yacktman) % has ranged from 11.54 to 56.75 over the past decade. While the company's 10-year median is 22.69 vs. the industry median of 6.25, Smiths News 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 Media - Diversified company?
The median Forward Rate of Return (Yacktman) % among Media - Diversified companies is 6.25, based on 636 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. Smiths News's current Forward Rate of Return (Yacktman) % of 25.53% is 308.5% 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 Smiths News and its competitors. For the Media - Diversified industry, the median Forward Rate of Return (Yacktman) % is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths News's current Forward Rate of Return (Yacktman) % is 25.53%, which is 13% above median its own 10-year median of 22.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths News stock overvalued right now?
Based on GuruFocus' analysis, Smiths News (LSE:SNWS) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.53, compared to a current price of £0.69 — trading 29.4% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 25.53%, which is 13% above median its 10-year median of 22.69 and 308.5% above the Media - Diversified industry median of 6.25. Smiths News' overall GF Score™ is 41/100 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 Smiths News (LSE:SNWS), the current Forward Rate of Return (Yacktman) % is 25.53% as of Aug. 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 Smiths News (LSE:SNWS) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths News stock appears to be overvalued.
The current stock price of £0.69 is trading 29.4% above its estimated GF Value™ of £0.53.
GuruFocus considers Smiths News to be Modestly Overvalued.
Key valuation signals for LSE:SNWS:
Forward Rate of Return (Yacktman) %: 25.53% (13% above median its 10-year median of 22.69)
GF Value™: £0.53 vs. price of £0.69 (29.4% above fair value)
Industry Position: 308.5% above the Media - Diversified median (#117 of 636)
No single metric tells the full story. See the LSE:SNWS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths News PLC is a UK wholesaler of newspapers and magazines, providing nationwide early-morning distribution and logistics services. The company supplies newspapers, magazines, and related products to a wide network of retail outlets, supported by integrated services such as warehousing, pick-and-pack, returns collection, recycling, invoicing, and market insight. Operating through a hub-and-spoke distribution network across England and Wales, Smiths News delivers seven days a week, reaching locations from urban centres to remote rural communities, and also offers recycling and waste management solutions through its dedicated recycling operations.
41GF Score
Get the complete analysis for LSE:SNWS
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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