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Constellation BrandsLTS:0REP 69 Forward Rate of Return (Yacktman) % is 21.04% as of May. 2026, which is 15% above its 10-year median of 18.22. GuruFocus rates LTS:0REP with a GF Score™ of 69/100 and a GF Value™ of CHF258.83. The stock has 3 warning signs investors should review. Among 164 Beverages - Alcoholic companies, Constellation Brands ranks better than 79.27% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Constellation Brands's forward rate of return for was 21.04%.
The historical rank and industry rank for Constellation Brands's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LTS:0REP'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3 Med: 18.22 Max: 22.08
Current: 21.19
During the past 13 years, Constellation Brands's highest Forward Rate of Return was 22.08. The lowest was 3.00. And the median was 18.22.
LTS:0REP's Forward Rate of Return (Yacktman) % is ranked better than 79.27% of 164
companies
in the Beverages - Alcoholic industry
Industry Median: 10.28
vs LTS:0REP: 21.19
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.
Constellation Brands (LTS:0REP) 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.
Constellation Brands Forward Rate of Return (Yacktman) % Related Terms
Constellation Brands Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Constellation Brands'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.
Constellation Brands Forward Rate of Return (Yacktman) % Chart
LTS:0REP vs TAP, SAM: Forward Rate of Return (Yacktman) % Comparison
For the Beverages - Brewers subindustry, Constellation Brands'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.
Constellation Brands Forward Rate of Return (Yacktman) % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Constellation Brands's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Constellation Brands's Forward Rate of Return (Yacktman) % falls into.
Constellation Brands 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 21.04% mean?
Constellation Brands (LTS:0REP) has a Forward Rate of Return (Yacktman) % of 21.04% as of May. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Constellation Brands and its competitors. This is 15% above median its historical median of 18.22. Over the past decade, Constellation Brands' Forward Rate of Return (Yacktman) % has ranged from 3.00 to 22.08. According to the industry distribution chart, Constellation Brands ranks #34 out of 164 companies in the Beverages - Alcoholic industry, placing it in the top 20.7%.
Is Constellation Brands' Forward Rate of Return (Yacktman) % too high?
Constellation Brands' current Forward Rate of Return (Yacktman) % of 21.04% is 15% above median its 10-year median of 18.22. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 22.08. The Beverages - Alcoholic industry median Forward Rate of Return (Yacktman) % is 10.28. Constellation Brands' value of 21.04% is 104.7% above this industry median. Based on the distribution chart, Constellation Brands ranks #34 out of 164 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Constellation Brands has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Constellation Brands' Forward Rate of Return (Yacktman) % compare to TAP and SAM?
According to the Beverages - Alcoholic industry distribution chart, Constellation Brands ranks #34 out of 164 companies for Forward Rate of Return (Yacktman) %. This places Constellation Brands in the top 21% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 10.28. Constellation Brands' value of 21.04% is 104.7% above this benchmark. Historically, Constellation Brands' own Forward Rate of Return (Yacktman) % has ranged from 3.00 to 22.08 over the past decade. While the company's 10-year median is 18.22 vs. the industry median of 10.28, Constellation Brands 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 Beverages - Alcoholic company?
The median Forward Rate of Return (Yacktman) % among Beverages - Alcoholic companies is 10.28, based on 164 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. Constellation Brands's current Forward Rate of Return (Yacktman) % of 21.04% is 104.7% 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 Constellation Brands and its competitors. For the Beverages - Alcoholic industry, the median Forward Rate of Return (Yacktman) % is 10.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Brands's current Forward Rate of Return (Yacktman) % is 21.04%, which is 15% above median its own 10-year median of 18.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Constellation Brands stock overvalued right now?
Constellation Brands (LTS:0REP) has a current Forward Rate of Return (Yacktman) % of 21.04%. The stock's GF Value™ is CHF258.83, compared to a current price of CHF196.36 — trading 24.1% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 21.04%, which is 15% above median its 10-year median of 18.22 and 104.7% above the Beverages - Alcoholic industry median of 10.28. Constellation Brands' overall GF Score™ is 69/100 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 Constellation Brands (LTS:0REP), the current Forward Rate of Return (Yacktman) % is 21.04% as of May. 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 Constellation Brands (LTS:0REP) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Brands stock appears to be undervalued.
The current stock price of CHF196.36 is trading 24.1% below its estimated GF Value™ of CHF258.83.
Key valuation signals for LTS:0REP:
Forward Rate of Return (Yacktman) %: 21.04% (15% above median its 10-year median of 18.22)
GF Value™: CHF258.83 vs. price of CHF196.36 (24.1% below fair value)
Industry Position: 104.7% above the Beverages - Alcoholic median (#34 of 164)
No single metric tells the full story. See the LTS:0REP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the US, generating more than 90% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company has pruned assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the US, the firm has limited revenue exposure to international markets. Constellation owns a 10% stake in Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.
69GF Score
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