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Lifeway FoodsLWAY -0.93%93 Forward Rate of Return (Yacktman) % is 19.64% as of Jun. 2026. GuruFocus rates LWAY with a GF Score™ of 93/100 and a GF Value™ of $28.73 (Modestly Undervalued). Among 1,409 Consumer Packaged Goods companies, Lifeway Foods ranks better than 77.64% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Lifeway Foods's forward rate of return for was 19.64%.
The historical rank and industry rank for Lifeway Foods's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LWAY'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -34.94 Med: -1.33 Max: 21.6
Current: 19.56
During the past 13 years, Lifeway Foods's highest Forward Rate of Return was 21.60. The lowest was -34.94. And the median was -1.33.
LWAY's Forward Rate of Return (Yacktman) % is ranked better than 77.64% of 1409
companies
in the Consumer Packaged Goods industry
Industry Median: 8.58
vs LWAY: 19.56
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.
Lifeway Foods (NAS:LWAY) 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.
Lifeway Foods Forward Rate of Return (Yacktman) % Related Terms
Lifeway Foods Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Lifeway Foods'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.
Lifeway Foods Forward Rate of Return (Yacktman) % Chart
LWAY vs PRE, AMNF, BGS: Forward Rate of Return (Yacktman) % Comparison
For the Packaged Foods subindustry, Lifeway Foods'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.
Lifeway Foods Forward Rate of Return (Yacktman) % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lifeway Foods's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Lifeway Foods's Forward Rate of Return (Yacktman) % falls into.
Lifeway Foods 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).
Lifeway Foods's Forward Rate of Return of Jun. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
-0.10857143
/
29.84
+
0.2
=
19.64 %
* 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 19.64% mean?
Lifeway Foods (LWAY) has a Forward Rate of Return (Yacktman) % of 19.64% 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 Lifeway Foods and its competitors. According to the industry distribution chart, Lifeway Foods ranks #315 out of 1409 companies in the Consumer Packaged Goods industry, placing it in the top 22.4%.
Is Lifeway Foods' Forward Rate of Return (Yacktman) % too high?
Lifeway Foods' current Forward Rate of Return (Yacktman) % is 19.64%. The Consumer Packaged Goods industry median Forward Rate of Return (Yacktman) % is 8.58. Lifeway Foods' value of 19.64% is 128.9% above this industry median. Based on the distribution chart, Lifeway Foods ranks #315 out of 1409 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Lifeway Foods has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lifeway Foods' Forward Rate of Return (Yacktman) % compare to PRE and AMNF?
According to the Consumer Packaged Goods industry distribution chart, Lifeway Foods ranks #315 out of 1409 companies for Forward Rate of Return (Yacktman) %. This places Lifeway Foods in the top 22% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 8.58. Lifeway Foods' value of 19.64% is 128.9% above this benchmark. 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 8.58, based on 1,409 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. Lifeway Foods's current Forward Rate of Return (Yacktman) % of 19.64% is 128.9% 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 Lifeway Foods and its competitors. For the Consumer Packaged Goods industry, the median Forward Rate of Return (Yacktman) % is 8.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lifeway Foods's current Forward Rate of Return (Yacktman) % is 19.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lifeway Foods stock overvalued right now?
Based on GuruFocus' analysis, Lifeway Foods (LWAY) is currently considered Modestly Undervalued. The stock's GF Value™ is $28.73, compared to a current price of $24.51 — trading 14.7% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 19.64% and 128.9% above the Consumer Packaged Goods industry median of 8.58. Lifeway Foods' overall GF Score™ is 93/100. 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 Lifeway Foods (LWAY), the current Forward Rate of Return (Yacktman) % is 19.64% 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 Lifeway Foods (LWAY) Overvalued in 2026?
Based on GuruFocus' analysis, Lifeway Foods stock appears to be undervalued.
The current stock price of $24.51 is trading 14.7% below its estimated GF Value™ of $28.73.
GuruFocus considers Lifeway Foods to be Modestly Undervalued.
Key valuation signals for LWAY:
Forward Rate of Return (Yacktman) %: 19.64%
GF Value™: $28.73 vs. price of $24.51 (14.7% below fair value)
Industry Position: 128.9% above the Consumer Packaged Goods median (#315 of 1409)
No single metric tells the full story. See the LWAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lifeway Foods Inc is engaged in manufacturing probiotic, cultured, functional dairy health food products. Its primary product is drinkable kefir, which is a cultured dairy product. Its product categories are Drinkable Kefir, which is the key revenue-driving product, European-style soft cheeses, Cream, ProBugs, Frozen Kefir, and Other dairy. The company manufactures and markets products under the Lifeway and Fresh Made brand names, as well as under private labels on behalf of customers. It sells the products through a direct sales force, brokers, and distributors.
93GF Score
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