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Deutsche Telekom AGLTS:0MPH +0.85%71 Forward Rate of Return (Yacktman) % is 25.81% as of Jun. 2026, which is 65% above its 10-year median of 15.62. GuruFocus rates LTS:0MPH with a GF Score™ of 71/100 and a GF Value™ of €28.73 (Fairly Valued). The stock has 2 warning signs investors should review. Among 291 Telecommunication Services companies, Deutsche Telekom AG ranks better than 70.79% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Deutsche Telekom AG's forward rate of return for was 25.81%.
The historical rank and industry rank for Deutsche Telekom AG's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LTS:0MPH'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 1.19 Med: 15.62 Max: 28.56
Current: 18.08
During the past 13 years, Deutsche Telekom AG's highest Forward Rate of Return was 28.56. The lowest was 1.19. And the median was 15.62.
LTS:0MPH's Forward Rate of Return (Yacktman) % is ranked better than 70.79% of 291
companies
in the Telecommunication Services industry
Industry Median: 12.37
vs LTS:0MPH: 18.08
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.
Deutsche Telekom AG (LTS:0MPH) 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.
Deutsche Telekom AG Forward Rate of Return (Yacktman) % Related Terms
Deutsche Telekom AG Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Deutsche Telekom AG'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.
Deutsche Telekom AG Forward Rate of Return (Yacktman) % Chart
LTS:0MPH vs VZ, TMUS, T: Forward Rate of Return (Yacktman) % Comparison
For the Telecom Services subindustry, Deutsche Telekom AG'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.
Deutsche Telekom AG Forward Rate of Return (Yacktman) % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Deutsche Telekom AG's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Deutsche Telekom AG's Forward Rate of Return (Yacktman) % falls into.
Deutsche Telekom AG 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 25.81% mean?
Deutsche Telekom AG (LTS:0MPH) has a Forward Rate of Return (Yacktman) % of 25.81% 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 Deutsche Telekom AG and its competitors. This is 65% above median its historical median of 15.62. Over the past decade, Deutsche Telekom AG's Forward Rate of Return (Yacktman) % has ranged from 1.19 to 28.56. According to the industry distribution chart, Deutsche Telekom AG ranks #85 out of 291 companies in the Telecommunication Services industry, placing it in the top 29.2%.
Is Deutsche Telekom AG's Forward Rate of Return (Yacktman) % too high?
Deutsche Telekom AG's current Forward Rate of Return (Yacktman) % of 25.81% is 65% above median its 10-year median of 15.62. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 28.56. The Telecommunication Services industry median Forward Rate of Return (Yacktman) % is 12.37. Deutsche Telekom AG's value of 25.81% is 108.6% above this industry median. Based on the distribution chart, Deutsche Telekom AG ranks #85 out of 291 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Deutsche Telekom AG has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Deutsche Telekom AG's Forward Rate of Return (Yacktman) % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Deutsche Telekom AG ranks #85 out of 291 companies for Forward Rate of Return (Yacktman) %. This puts Deutsche Telekom AG in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 12.37. Deutsche Telekom AG's value of 25.81% is 108.6% above this benchmark. Historically, Deutsche Telekom AG's own Forward Rate of Return (Yacktman) % has ranged from 1.19 to 28.56 over the past decade. While the company's 10-year median is 15.62 vs. the industry median of 12.37, Deutsche Telekom AG 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 Telecommunication Services company?
The median Forward Rate of Return (Yacktman) % among Telecommunication Services companies is 12.37, based on 291 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. Deutsche Telekom AG's current Forward Rate of Return (Yacktman) % of 25.81% is 108.6% 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 Deutsche Telekom AG and its competitors. For the Telecommunication Services industry, the median Forward Rate of Return (Yacktman) % is 12.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deutsche Telekom AG's current Forward Rate of Return (Yacktman) % is 25.81%, which is 65% above median its own 10-year median of 15.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deutsche Telekom AG stock overvalued right now?
Based on GuruFocus' analysis, Deutsche Telekom AG (LTS:0MPH) is currently considered Fairly Valued. The stock's GF Value™ is €28.73, compared to a current price of €28.93 — trading 0.7% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 25.81%, which is 65% above median its 10-year median of 15.62 and 108.6% above the Telecommunication Services industry median of 12.37. Deutsche Telekom AG's overall GF Score™ is 71/100 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 Deutsche Telekom AG (LTS:0MPH), the current Forward Rate of Return (Yacktman) % is 25.81% 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 Deutsche Telekom AG (LTS:0MPH) Overvalued in 2026?
Based on GuruFocus' analysis, Deutsche Telekom AG stock appears to be overvalued.
The current stock price of €28.93 is trading 0.7% above its estimated GF Value™ of €28.73.
GuruFocus considers Deutsche Telekom AG to be Fairly Valued.
Key valuation signals for LTS:0MPH:
Forward Rate of Return (Yacktman) %: 25.81% (65% above median its 10-year median of 15.62)
GF Value™: €28.73 vs. price of €28.93 (0.7% above fair value)
Industry Position: 108.6% above the Telecommunication Services median (#85 of 291)
No single metric tells the full story. See the LTS:0MPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deutsche Telekom is Germany's incumbent telecom operator and remains the dominant player in mobile and fixed markets. It also owns a controlling stake in T-Mobile US—one of three primary wireless carriers in the United States—which merged with Sprint in 2020, consolidating the market from four to three operators. Aside from its two core markets, Deutsche Telekom operates in several Central European countries and holds an IT arm (Systems Solutions).
71GF Score
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