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Essex Property TrustMEX:ESS 78 Forward Rate of Return (Yacktman) % is 8.30% as of Mar. 2026, which is 8% below its 10-year median of 9.01. GuruFocus rates MEX:ESS with a GF Score™ of 78/100 and a GF Value™ of MXN3,817.06. The stock has 12 warning signs investors should review. Among 625 REITs companies, Essex Property Trust ranks worse than 53.28% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Essex Property Trust's forward rate of return for was 8.30%.
The historical rank and industry rank for Essex Property Trust's Forward Rate of Return (Yacktman) % or its related term are showing as below:
MEX:ESS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -1 Med: 9.01 Max: 20.76
Current: 7.25
During the past 13 years, Essex Property Trust's highest Forward Rate of Return was 20.76. The lowest was -1.00. And the median was 9.01.
MEX:ESS's Forward Rate of Return (Yacktman) % is ranked worse than 53.28% of 625
companies
in the REITs industry
Industry Median: 8.1
vs MEX:ESS: 7.25
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.
Essex Property Trust Forward Rate of Return (Yacktman) % Related Terms
Essex Property Trust Forward Rate of Return (Yacktman) % Historical Data
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The historical data trend for Essex Property Trust'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.
Essex Property Trust Forward Rate of Return (Yacktman) % Chart
MEX:ESS vs INVH, MAA, SUI: Forward Rate of Return (Yacktman) % Comparison
For the REIT - Residential subindustry, Essex Property Trust'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.
Essex Property Trust Forward Rate of Return (Yacktman) % vs REITs Industry
For the REITs industry and Real Estate sector, Essex Property Trust's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Essex Property Trust's Forward Rate of Return (Yacktman) % falls into.
Essex Property Trust 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 8.30% mean?
Essex Property Trust (MEX:ESS) has a Forward Rate of Return (Yacktman) % of 8.30% as of Mar. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Essex Property Trust and its competitors. This is near median its historical median of 9.01. According to the industry distribution chart, Essex Property Trust ranks #333 out of 625 companies in the REITs industry, placing it in the top 53.3%.
Is Essex Property Trust's Forward Rate of Return (Yacktman) % too high?
Essex Property Trust's current Forward Rate of Return (Yacktman) % of 8.30% is near median its 10-year median of 9.01. The REITs industry median Forward Rate of Return (Yacktman) % is 8.10. Essex Property Trust's value of 8.30% is 2.5% above this industry median. Based on the distribution chart, Essex Property Trust ranks #333 out of 625 companies in the REITs industry, which is below the industry midpoint. Overall, Essex Property Trust has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Essex Property Trust's Forward Rate of Return (Yacktman) % compare to INVH and MAA?
According to the REITs industry distribution chart, Essex Property Trust ranks #333 out of 625 companies for Forward Rate of Return (Yacktman) %. This places Essex Property Trust in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.10. Essex Property Trust's value of 8.30% is 2.5% above this benchmark. While the company's 10-year median is 9.01 vs. the industry median of 8.10, Essex Property Trust 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 REITs company?
The median Forward Rate of Return (Yacktman) % among REITs companies is 8.10, based on 625 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. Essex Property Trust's current Forward Rate of Return (Yacktman) % of 8.30% is 2.5% 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 Essex Property Trust and its competitors. For the REITs industry, the median Forward Rate of Return (Yacktman) % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essex Property Trust's current Forward Rate of Return (Yacktman) % is 8.30%, which is near median its own 10-year median of 9.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essex Property Trust stock overvalued right now?
Essex Property Trust (MEX:ESS) has a current Forward Rate of Return (Yacktman) % of 8.30%. The stock's GF Value™ is MXN3,817.06, compared to a current price of MXN4,081.12 — trading 6.9% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 8.30%, which is near median its 10-year median of 9.01 and 2.5% above the REITs industry median of 8.10. Essex Property Trust's overall GF Score™ is 78/100 with 12 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 Essex Property Trust (MEX:ESS), the current Forward Rate of Return (Yacktman) % is 8.30% as of Mar. 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 Essex Property Trust (MEX:ESS) Overvalued in 2026?
Based on GuruFocus' analysis, Essex Property Trust stock appears to be overvalued.
The current stock price of MXN4,081.12 is trading 6.9% above its estimated GF Value™ of MXN3,817.06.
Key valuation signals for MEX:ESS:
Forward Rate of Return (Yacktman) %: 8.30% (near median its 10-year median of 9.01)
GF Value™: MXN3,817.06 vs. price of MXN4,081.12 (6.9% above fair value)
Industry Position: 2.5% above the REITs median (#333 of 625)
No single metric tells the full story. See the MEX:ESS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essex Property Trust owns a portfolio of 259 apartment communities with over 63,000 units. The company focuses on owning large, high-quality properties on the West Coast in the urban and suburban submarkets of Southern California, Northern California, and Seattle.
78GF Score
Get the complete analysis for MEX:ESS
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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