Barratt Redrow (MEX:BDEV) Forward Rate of Return (Yacktman) %: -10.81% (As of Jun. 2025)

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What is Barratt Redrow Forward Rate of Return (Yacktman) %?

Barratt Redrow MEX:BDEV 69 Forward Rate of Return (Yacktman) % is -10.81% as of Jun. 2025. GuruFocus rates MEX:BDEV with a GF Score™ of 69/100. The stock has 6 warning signs investors should review. Among 74 Homebuilding & Construction companies, Barratt Redrow ranks worse than 75.68% on this metric.

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Barratt Redrow's forward rate of return for was -10.81%.

The historical rank and industry rank for Barratt Redrow's Forward Rate of Return (Yacktman) % or its related term are showing as below:

MEX:BDEV' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -10.27   Med: 5.92   Max: 27.92
Current: -7.12

During the past 13 years, Barratt Redrow's highest Forward Rate of Return was 27.92. The lowest was -10.27. And the median was 5.92.

MEX:BDEV's Forward Rate of Return (Yacktman) % is ranked worse than
75.68% of 74 companies
in the Homebuilding & Construction industry
Industry Median: 5.69 vs MEX:BDEV: -7.12

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.


Barratt Redrow  (MEX:BDEV) 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.


Barratt Redrow Forward Rate of Return (Yacktman) % Related Terms


Barratt Redrow Forward Rate of Return (Yacktman) % Historical Data

* Premium members only.

The historical data trend for Barratt Redrow'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.

Barratt Redrow Forward Rate of Return (Yacktman) % Chart

Barratt Redrow Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.88 4.66 7.04 -6.89 -10.81

Barratt Redrow Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Forward Rate of Return (Yacktman) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -6.89 0.00 -10.81 0.00

MEX:BDEV vs DHI, PHM, LEN: Forward Rate of Return (Yacktman) % Comparison

For the Residential Construction subindustry, Barratt Redrow'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.


Barratt Redrow Forward Rate of Return (Yacktman) % vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Barratt Redrow's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Barratt Redrow's Forward Rate of Return (Yacktman) % falls into.



Barratt Redrow 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).

Barratt Redrow's Forward Rate of Return of Jun. 2025 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=7.75866667/0+-0.2048
=0 %

* 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 -10.81% mean?
Barratt Redrow (MEX:BDEV) has a Forward Rate of Return (Yacktman) % of -10.81% as of Jun. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Barratt Redrow and its competitors. According to the industry distribution chart, Barratt Redrow ranks #56 out of 74 companies in the Homebuilding & Construction industry, placing it in the top 75.7%.
Is Barratt Redrow's Forward Rate of Return (Yacktman) % too high?
Barratt Redrow's current Forward Rate of Return (Yacktman) % is -10.81%. Based on the distribution chart, Barratt Redrow ranks #56 out of 74 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, Barratt Redrow has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Barratt Redrow's Forward Rate of Return (Yacktman) % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Barratt Redrow ranks #56 out of 74 companies for Forward Rate of Return (Yacktman) %. This places Barratt Redrow in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 5.69. 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 Homebuilding & Construction company?
The median Forward Rate of Return (Yacktman) % among Homebuilding & Construction companies is 5.69, based on 74 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. 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 Barratt Redrow and its competitors. For the Homebuilding & Construction industry, the median Forward Rate of Return (Yacktman) % is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barratt Redrow's current Forward Rate of Return (Yacktman) % is -10.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Barratt Redrow stock overvalued right now?
Barratt Redrow (MEX:BDEV) has a current Forward Rate of Return (Yacktman) % of -10.81%. The current Forward Rate of Return (Yacktman) % is -10.81%. Barratt Redrow's overall GF Score™ is 69/100 with 6 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 Barratt Redrow (MEX:BDEV), the current Forward Rate of Return (Yacktman) % is -10.81% as of Jun. 2025. 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.

Barratt Redrow Business Description

Address Cartwright Way, Forest Business Park, Barratt House, Bardon Hill, Coalville, Leicestershire, GBR, LE67 1UF
Barratt Redrow is the UK's largest residential property developer by revenue, marketing homes under its three brands: Barratt Homes, David Wilson, and Redrow. Barratt Developments, already the largest residential property developer in the UK by revenue, merged with Redrow in 2024. Barratt Redrow typifies the business model employed by UK homebuilders, traditionally operating in the land development, construction, and sales and marketing segments of the residential property development value chain.