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KONE OyjLTS:0II2 +2.42%74 Forward Rate of Return (Yacktman) % is 7.54% as of Jun. 2026, which is 4% above its 10-year median of 7.27. GuruFocus rates LTS:0II2 with a GF Score™ of 74/100 and a GF Value™ of €51.91 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,154 Industrial Products companies, KONE Oyj ranks better than 50.14% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. KONE Oyj's forward rate of return for was 7.54%.
The historical rank and industry rank for KONE Oyj's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LTS:0II2'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 2.12 Med: 7.27 Max: 17.92
Current: 7.36
During the past 13 years, KONE Oyj's highest Forward Rate of Return was 17.92. The lowest was 2.12. And the median was 7.27.
LTS:0II2's Forward Rate of Return (Yacktman) % is ranked better than 50.14% of 2154
companies
in the Industrial Products industry
Industry Median: 7.31
vs LTS:0II2: 7.36
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.
KONE Oyj (LTS:0II2) 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.
KONE Oyj Forward Rate of Return (Yacktman) % Related Terms
KONE Oyj Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for KONE Oyj'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.
KONE Oyj Forward Rate of Return (Yacktman) % Chart
LTS:0II2 vs GEV, ETN, PH: Forward Rate of Return (Yacktman) % Comparison
For the Specialty Industrial Machinery subindustry, KONE Oyj'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.
KONE Oyj Forward Rate of Return (Yacktman) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, KONE Oyj's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where KONE Oyj's Forward Rate of Return (Yacktman) % falls into.
KONE Oyj 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 7.54% mean?
KONE Oyj (LTS:0II2) has a Forward Rate of Return (Yacktman) % of 7.54% 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 KONE Oyj and its competitors. This is near median its historical median of 7.27. Over the past decade, KONE Oyj's Forward Rate of Return (Yacktman) % has ranged from 2.12 to 17.92. According to the industry distribution chart, KONE Oyj ranks #1074 out of 2154 companies in the Industrial Products industry, placing it in the top 49.9%.
Is KONE Oyj's Forward Rate of Return (Yacktman) % too high?
KONE Oyj's current Forward Rate of Return (Yacktman) % of 7.54% is near median its 10-year median of 7.27. Over the past 10 years, this metric has ranged from a low of 2.12 to a high of 17.92. The Industrial Products industry median Forward Rate of Return (Yacktman) % is 7.31. KONE Oyj's value of 7.54% is 3.1% above this industry median. Based on the distribution chart, KONE Oyj ranks #1074 out of 2154 companies in the Industrial Products industry, which is above the industry midpoint. Overall, KONE Oyj has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KONE Oyj's Forward Rate of Return (Yacktman) % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, KONE Oyj ranks #1074 out of 2154 companies for Forward Rate of Return (Yacktman) %. This puts KONE Oyj in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 7.31. KONE Oyj's value of 7.54% is 3.1% above this benchmark. Historically, KONE Oyj's own Forward Rate of Return (Yacktman) % has ranged from 2.12 to 17.92 over the past decade. While the company's 10-year median is 7.27 vs. the industry median of 7.31, KONE Oyj 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 an Industrial Products company?
The median Forward Rate of Return (Yacktman) % among Industrial Products companies is 7.31, based on 2,154 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. KONE Oyj's current Forward Rate of Return (Yacktman) % of 7.54% is 3.1% 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 KONE Oyj and its competitors. For the Industrial Products industry, the median Forward Rate of Return (Yacktman) % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KONE Oyj's current Forward Rate of Return (Yacktman) % is 7.54%, which is near median its own 10-year median of 7.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KONE Oyj stock overvalued right now?
Based on GuruFocus' analysis, KONE Oyj (LTS:0II2) is currently considered Fairly Valued. The stock's GF Value™ is €51.91, compared to a current price of €51.88 — trading 0.1% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 7.54%, which is near median its 10-year median of 7.27 and 3.1% above the Industrial Products industry median of 7.31. KONE Oyj's overall GF Score™ is 74/100 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 KONE Oyj (LTS:0II2), the current Forward Rate of Return (Yacktman) % is 7.54% 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 KONE Oyj (LTS:0II2) Overvalued in 2026?
Based on GuruFocus' analysis, KONE Oyj stock appears to be undervalued.
The current stock price of €51.88 is trading 0.1% below its estimated GF Value™ of €51.91.
GuruFocus considers KONE Oyj to be Fairly Valued.
Key valuation signals for LTS:0II2:
Forward Rate of Return (Yacktman) %: 7.54% (near median its 10-year median of 7.27)
GF Value™: €51.91 vs. price of €51.88 (0.1% below fair value)
Industry Position: 3.1% above the Industrial Products median (#1074 of 2154)
No single metric tells the full story. See the LTS:0II2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kone is a global top-four supplier of elevators and escalators. Kone began producing elevators in Finland in 1918 and today generates revenue in three ways: selling new elevators and escalators, modernizing old equipment, and servicing its installed base. Most of the company's profit comes from the last activity, where contracts are rolled over annually with built-in price increases. The bulk of Kone's business is in elevators, which are more numerous globally than escalators. Its business model is similar to closest competitors Otis, Schindler, and TK Elevator.
74GF Score
Get the complete analysis for LTS:0II2
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