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Lamb Weston HoldingsLW -1.68%85 Forward Rate of Return (Yacktman) % is 17.44% as of May. 2026, which is 65% above its 10-year median of 10.60. GuruFocus rates LW with a GF Score™ of 85/100 and a GF Value™ of $65.39 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,408 Consumer Packaged Goods companies, Lamb Weston Holdings ranks better than 72.16% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Lamb Weston Holdings's forward rate of return for was 17.44%.
The historical rank and industry rank for Lamb Weston Holdings's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LW'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -1.14 Med: 10.6 Max: 21.39
Current: 17.12
During the past 13 years, Lamb Weston Holdings's highest Forward Rate of Return was 21.39. The lowest was -1.14. And the median was 10.60.
LW's Forward Rate of Return (Yacktman) % is ranked better than 72.16% of 1408
companies
in the Consumer Packaged Goods industry
Industry Median: 8.405
vs LW: 17.12
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.
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.
Lamb Weston Holdings Forward Rate of Return (Yacktman) % Related Terms
Lamb Weston Holdings Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Lamb Weston Holdings'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.
Lamb Weston Holdings Forward Rate of Return (Yacktman) % Chart
LW vs PPC, CAG, CPB: Forward Rate of Return (Yacktman) % Comparison
For the Packaged Foods subindustry, Lamb Weston Holdings'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.
Lamb Weston Holdings Forward Rate of Return (Yacktman) % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Lamb Weston Holdings's Forward Rate of Return (Yacktman) % falls into.
Lamb Weston Holdings 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 17.44% mean?
Lamb Weston Holdings (LW) has a Forward Rate of Return (Yacktman) % of 17.44% 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 Lamb Weston Holdings and its competitors. This is 65% above median its historical median of 10.60. According to the industry distribution chart, Lamb Weston Holdings ranks #392 out of 1408 companies in the Consumer Packaged Goods industry, placing it in the top 27.8%.
Is Lamb Weston Holdings' Forward Rate of Return (Yacktman) % too high?
Lamb Weston Holdings' current Forward Rate of Return (Yacktman) % of 17.44% is 65% above median its 10-year median of 10.60. The Consumer Packaged Goods industry median Forward Rate of Return (Yacktman) % is 8.41. Lamb Weston Holdings' value of 17.44% is 107.5% above this industry median. Based on the distribution chart, Lamb Weston Holdings ranks #392 out of 1408 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Lamb Weston Holdings has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lamb Weston Holdings' Forward Rate of Return (Yacktman) % compare to PPC and CAG?
According to the Consumer Packaged Goods industry distribution chart, Lamb Weston Holdings ranks #392 out of 1408 companies for Forward Rate of Return (Yacktman) %. This puts Lamb Weston Holdings in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.41. Lamb Weston Holdings' value of 17.44% is 107.5% above this benchmark. While the company's 10-year median is 10.60 vs. the industry median of 8.41, Lamb Weston Holdings 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 Consumer Packaged Goods company?
The median Forward Rate of Return (Yacktman) % among Consumer Packaged Goods companies is 8.41, based on 1,408 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. Lamb Weston Holdings's current Forward Rate of Return (Yacktman) % of 17.44% is 107.5% 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 Lamb Weston Holdings and its competitors. For the Consumer Packaged Goods industry, the median Forward Rate of Return (Yacktman) % is 8.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lamb Weston Holdings's current Forward Rate of Return (Yacktman) % is 17.44%, which is 65% above median its own 10-year median of 10.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lamb Weston Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lamb Weston Holdings (LW) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.39, compared to a current price of $47.32 — trading 27.6% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 17.44%, which is 65% above median its 10-year median of 10.60 and 107.5% above the Consumer Packaged Goods industry median of 8.41. Lamb Weston Holdings' overall GF Score™ is 85/100 with 5 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 Lamb Weston Holdings (LW), the current Forward Rate of Return (Yacktman) % is 17.44% 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 Lamb Weston Holdings (LW) Overvalued in 2026?
Based on GuruFocus' analysis, Lamb Weston Holdings stock appears to be undervalued.
The current stock price of $47.32 is trading 27.6% below its estimated GF Value™ of $65.39.
GuruFocus considers Lamb Weston Holdings to be Modestly Undervalued.
Key valuation signals for LW:
Forward Rate of Return (Yacktman) %: 17.44% (65% above median its 10-year median of 10.60)
GF Value™: $65.39 vs. price of $47.32 (27.6% below fair value)
Industry Position: 107.5% above the Consumer Packaged Goods median (#392 of 1408)
No single metric tells the full story. See the LW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lamb Weston is North America's largest and the world's second-largest producer of branded and private-label frozen potato products, both by volume and value. The company's portfolio is anchored by french fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Roughly two thirds of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald's is Lamb Weston's single-largest customer at 15% of fiscal 2025 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.
85GF Score
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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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