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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Dangote CementNSA:DCP 100 Forward Rate of Return (Yacktman) % is 23.57% as of Jun. 2026, which is 13% above its 10-year median of 20.88. GuruFocus rates NSA:DCP with a GF Score™ of 100/100 and a GF Value™ of ₦846.57 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 319 Building Materials companies, Dangote Cement ranks better than 86.83% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Dangote Cement's forward rate of return for was 23.57%.
The historical rank and industry rank for Dangote Cement's Forward Rate of Return (Yacktman) % or its related term are showing as below:
NSA:DCP'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 16.05 Med: 20.88 Max: 26.86
Current: 23.33
During the past 13 years, Dangote Cement's highest Forward Rate of Return was 26.86. The lowest was 16.05. And the median was 20.88.
NSA:DCP's Forward Rate of Return (Yacktman) % is ranked better than 86.83% of 319
companies
in the Building Materials industry
Industry Median: 7.77
vs NSA:DCP: 23.33
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.
Dangote Cement (NSA:DCP) 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.
Dangote Cement Forward Rate of Return (Yacktman) % Related Terms
Dangote Cement Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Dangote Cement'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.
Dangote Cement Forward Rate of Return (Yacktman) % Chart
NSA:DCP vs CRH, MLM, VMC: Forward Rate of Return (Yacktman) % Comparison
For the Building Materials subindustry, Dangote Cement'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.
Dangote Cement Forward Rate of Return (Yacktman) % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Dangote Cement's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Dangote Cement's Forward Rate of Return (Yacktman) % falls into.
Dangote Cement 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 23.57% mean?
Dangote Cement (NSA:DCP) has a Forward Rate of Return (Yacktman) % of 23.57% 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 Dangote Cement and its competitors. This is 13% above median its historical median of 20.88. Over the past decade, Dangote Cement's Forward Rate of Return (Yacktman) % has ranged from 16.05 to 26.86. According to the industry distribution chart, Dangote Cement ranks #42 out of 319 companies in the Building Materials industry, placing it in the top 13.2%.
Is Dangote Cement's Forward Rate of Return (Yacktman) % too high?
Dangote Cement's current Forward Rate of Return (Yacktman) % of 23.57% is 13% above median its 10-year median of 20.88. Over the past 10 years, this metric has ranged from a low of 16.05 to a high of 26.86. The Building Materials industry median Forward Rate of Return (Yacktman) % is 7.77. Dangote Cement's value of 23.57% is 203.3% above this industry median. Based on the distribution chart, Dangote Cement ranks #42 out of 319 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Dangote Cement has a GF Score™ of 100/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dangote Cement's Forward Rate of Return (Yacktman) % compare to CRH and MLM?
According to the Building Materials industry distribution chart, Dangote Cement ranks #42 out of 319 companies for Forward Rate of Return (Yacktman) %. This places Dangote Cement in the top 13% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 7.77. Dangote Cement's value of 23.57% is 203.3% above this benchmark. Historically, Dangote Cement's own Forward Rate of Return (Yacktman) % has ranged from 16.05 to 26.86 over the past decade. While the company's 10-year median is 20.88 vs. the industry median of 7.77, Dangote Cement 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 Building Materials company?
The median Forward Rate of Return (Yacktman) % among Building Materials companies is 7.77, based on 319 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. Dangote Cement's current Forward Rate of Return (Yacktman) % of 23.57% is 203.3% 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 Dangote Cement and its competitors. For the Building Materials industry, the median Forward Rate of Return (Yacktman) % is 7.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dangote Cement's current Forward Rate of Return (Yacktman) % is 23.57%, which is 13% above median its own 10-year median of 20.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dangote Cement stock overvalued right now?
Based on GuruFocus' analysis, Dangote Cement (NSA:DCP) is currently considered Modestly Overvalued. The stock's GF Value™ is ₦846.57, compared to a current price of ₦1,034.00 — trading 22.1% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 23.57%, which is 13% above median its 10-year median of 20.88 and 203.3% above the Building Materials industry median of 7.77. Dangote Cement's overall GF Score™ is 100/100 with 1 warning sign 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 Dangote Cement (NSA:DCP), the current Forward Rate of Return (Yacktman) % is 23.57% 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 Dangote Cement (NSA:DCP) Overvalued in 2026?
Based on GuruFocus' analysis, Dangote Cement stock appears to be overvalued.
The current stock price of ₦1,034.00 is trading 22.1% above its estimated GF Value™ of ₦846.57.
GuruFocus considers Dangote Cement to be Modestly Overvalued.
Key valuation signals for NSA:DCP:
Forward Rate of Return (Yacktman) %: 23.57% (13% above median its 10-year median of 20.88)
GF Value™: ₦846.57 vs. price of ₦1,034.00 (22.1% above fair value)
Industry Position: 203.3% above the Building Materials median (#42 of 319)
No single metric tells the full story. See the NSA:DCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dangote Cement PLC is a cement manufacturer. It manufactures and markets cement and related products through its 'Dangote' brand. The principal activity of the Company and its subsidiaries is to operate plants for the preparation, manufacture and distribution of cement and related products. The Company's production activities are undertaken at Obajana town in Kogi State, Gboko in Benue State and Ibese in Ogun State; all in Nigeria. Its geographical segment includes Nigeria and Pan Africa. The company derives a majority of revenue from Nigeria segment.
100GF Score
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