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Emerson Electric CoMEX:EMR 76 Forward Rate of Return (Yacktman) % is 18.17% as of Jun. 2026, which is 309% above its 10-year median of 4.44. GuruFocus rates MEX:EMR with a GF Score™ of 76/100 and a GF Value™ of MXN2,218.14 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,160 Industrial Products companies, Emerson Electric Co ranks better than 75.79% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Emerson Electric Co's forward rate of return for was 18.17%.
The historical rank and industry rank for Emerson Electric Co's Forward Rate of Return (Yacktman) % or its related term are showing as below:
MEX:EMR'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 0.02 Med: 4.44 Max: 18.26
Current: 17.98
During the past 13 years, Emerson Electric Co's highest Forward Rate of Return was 18.26. The lowest was 0.02. And the median was 4.44.
MEX:EMR's Forward Rate of Return (Yacktman) % is ranked better than 75.79% of 2160
companies
in the Industrial Products industry
Industry Median: 7.055
vs MEX:EMR: 17.98
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.
Emerson Electric Co (MEX:EMR) 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.
Emerson Electric Co Forward Rate of Return (Yacktman) % Related Terms
Emerson Electric Co Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Emerson Electric Co'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.
Emerson Electric Co Forward Rate of Return (Yacktman) % Chart
MEX:EMR vs ITW, CMI, AME: Forward Rate of Return (Yacktman) % Comparison
For the Specialty Industrial Machinery subindustry, Emerson Electric Co'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.
Emerson Electric Co Forward Rate of Return (Yacktman) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Forward Rate of Return (Yacktman) % falls into.
Emerson Electric Co 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 18.17% mean?
Emerson Electric Co (MEX:EMR) has a Forward Rate of Return (Yacktman) % of 18.17% 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 Emerson Electric Co and its competitors. This is 309% above median its historical median of 4.44. Over the past decade, Emerson Electric Co's Forward Rate of Return (Yacktman) % has ranged from 0.02 to 18.26. According to the industry distribution chart, Emerson Electric Co ranks #523 out of 2160 companies in the Industrial Products industry, placing it in the top 24.2%.
Is Emerson Electric Co's Forward Rate of Return (Yacktman) % too high?
Emerson Electric Co's current Forward Rate of Return (Yacktman) % of 18.17% is 309% above median its 10-year median of 4.44. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 18.26. The Industrial Products industry median Forward Rate of Return (Yacktman) % is 7.06. Emerson Electric Co's value of 18.17% is 157.5% above this industry median. Based on the distribution chart, Emerson Electric Co ranks #523 out of 2160 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Emerson Electric Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Emerson Electric Co's Forward Rate of Return (Yacktman) % compare to ITW and CMI?
According to the Industrial Products industry distribution chart, Emerson Electric Co ranks #523 out of 2160 companies for Forward Rate of Return (Yacktman) %. This places Emerson Electric Co in the top 24% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 7.06. Emerson Electric Co's value of 18.17% is 157.5% above this benchmark. Historically, Emerson Electric Co's own Forward Rate of Return (Yacktman) % has ranged from 0.02 to 18.26 over the past decade. While the company's 10-year median is 4.44 vs. the industry median of 7.06, Emerson Electric Co 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 an Industrial Products company?
The median Forward Rate of Return (Yacktman) % among Industrial Products companies is 7.06, based on 2,160 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. Emerson Electric Co's current Forward Rate of Return (Yacktman) % of 18.17% is 157.5% 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 Emerson Electric Co and its competitors. For the Industrial Products industry, the median Forward Rate of Return (Yacktman) % is 7.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current Forward Rate of Return (Yacktman) % is 18.17%, which is 309% above median its own 10-year median of 4.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emerson Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Emerson Electric Co (MEX:EMR) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN2,218.14, compared to a current price of MXN2,730.00 — trading 23.1% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 18.17%, which is 309% above median its 10-year median of 4.44 and 157.5% above the Industrial Products industry median of 7.06. Emerson Electric Co's overall GF Score™ is 76/100 with 7 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 Emerson Electric Co (MEX:EMR), the current Forward Rate of Return (Yacktman) % is 18.17% 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 Emerson Electric Co (MEX:EMR) Overvalued in 2026?
Based on GuruFocus' analysis, Emerson Electric Co stock appears to be overvalued.
The current stock price of MXN2,730.00 is trading 23.1% above its estimated GF Value™ of MXN2,218.14.
GuruFocus considers Emerson Electric Co to be Modestly Overvalued.
Key valuation signals for MEX:EMR:
Forward Rate of Return (Yacktman) %: 18.17% (309% above median its 10-year median of 4.44)
GF Value™: MXN2,218.14 vs. price of MXN2,730.00 (23.1% above fair value)
Industry Position: 157.5% above the Industrial Products median (#523 of 2160)
No single metric tells the full story. See the MEX:EMR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1890 as the first manufacturer of electric fans in North America, Emerson Electric has become a leading industrial automation player through the acquisition of established brands. Emerson organizes its business into seven segments that sell a wide range of automation software, power tools, and automation hardware such as valves, gauges, and switches. In recent years, Emerson divested its climate technology and consumer businesses to become more of a pure-play industrial automation company. The automation of a factory is an enticing long-term proposition for manufacturers, helping reduce accident rates and raise uptime and productivity.
76GF Score
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