PWCDF (Power of Canada) Forward Rate of Return (Yacktman) %: 14.44% (As of Jun. 2026) — 63% Below Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
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.

PWCDF Power Corporation of Canada PWCDF
57 GF Score
Price $68.27
GF Value $42.74
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is Power of Canada Forward Rate of Return (Yacktman) %?

Power of Canada PWCDF +3.22% 57 Forward Rate of Return (Yacktman) % is 14.44% as of Jun. 2026, which is 63% below its 10-year median of 39.06. GuruFocus rates PWCDF with a GF Score™ of 57/100 and a GF Value™ of $42.74 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 280 Insurance companies, Power of Canada ranks worse than 57.5% on this metric.

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Power of Canada's forward rate of return for was 14.44%.

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

PWCDF' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 13.73   Med: 39.06   Max: 70.28
Current: 13.73

During the past 13 years, Power of Canada's highest Forward Rate of Return was 70.28. The lowest was 13.73. And the median was 39.06.

PWCDF's Forward Rate of Return (Yacktman) % is ranked worse than
57.5% of 280 companies
in the Insurance industry
Industry Median: 17.12 vs PWCDF: 13.73

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.


Power of Canada  (OTCPK:PWCDF) 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.


Power of Canada Forward Rate of Return (Yacktman) % Related Terms


Power of Canada Forward Rate of Return (Yacktman) % Historical Data

* Premium members only.

The historical data trend for Power of Canada'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.

Power of Canada Forward Rate of Return (Yacktman) % Chart

Power of Canada Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.99 39.29 25.51 22.96 16.95

Power of Canada Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 21.15 20.85 16.95 17.77 14.44

PWCDF vs AFL, MET, PRU: Forward Rate of Return (Yacktman) % Comparison

For the Insurance - Life subindustry, Power of Canada'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.


Power of Canada Forward Rate of Return (Yacktman) % vs Insurance Industry

For the Insurance industry and Financial Services sector, Power of Canada's Forward Rate of Return (Yacktman) % distribution charts can be found below:

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


PWCDF
57GF Score
Power Corporation of Canada PWCDF
Forward Rate of Return (Yacktman) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Power of Canada 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).

Power of Canada's Forward Rate of Return of Jun. 2026 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=6.14552381/62.16+0.0272
=12.61 %

* 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 14.44% mean?
Power of Canada (PWCDF) has a Forward Rate of Return (Yacktman) % of 14.44% 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 Power of Canada and its competitors. This is 63% below median its historical median of 39.06. Over the past decade, Power of Canada's Forward Rate of Return (Yacktman) % has ranged from 13.73 to 70.28. According to the industry distribution chart, Power of Canada ranks #161 out of 280 companies in the Insurance industry, placing it in the top 57.5%.
Is Power of Canada's Forward Rate of Return (Yacktman) % too high?
Power of Canada's current Forward Rate of Return (Yacktman) % of 14.44% is 63% below median its 10-year median of 39.06. Over the past 10 years, this metric has ranged from a low of 13.73 to a high of 70.28. The Insurance industry median Forward Rate of Return (Yacktman) % is 17.12. Power of Canada's value of 14.44% is 15.7% below this industry median. Based on the distribution chart, Power of Canada ranks #161 out of 280 companies in the Insurance industry, which is below the industry midpoint. Overall, Power of Canada has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Power of Canada's Forward Rate of Return (Yacktman) % compare to AFL and MET?
According to the Insurance industry distribution chart, Power of Canada ranks #161 out of 280 companies for Forward Rate of Return (Yacktman) %. This places Power of Canada in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 17.12. Power of Canada's value of 14.44% is 15.7% below this benchmark. Historically, Power of Canada's own Forward Rate of Return (Yacktman) % has ranged from 13.73 to 70.28 over the past decade. While the company's 10-year median is 39.06 vs. the industry median of 17.12, Power of Canada has consistently been below 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 Insurance company?
The median Forward Rate of Return (Yacktman) % among Insurance companies is 17.12, based on 280 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. Power of Canada's current Forward Rate of Return (Yacktman) % of 14.44% is 15.7% below 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 Power of Canada and its competitors. For the Insurance industry, the median Forward Rate of Return (Yacktman) % is 17.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power of Canada's current Forward Rate of Return (Yacktman) % is 14.44%, which is 63% below median its own 10-year median of 39.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power of Canada stock overvalued right now?
Based on GuruFocus' analysis, Power of Canada (PWCDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $42.74, compared to a current price of $68.27 — trading 59.7% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 14.44%, which is 63% below median its 10-year median of 39.06 and 15.7% below the Insurance industry median of 17.12. Power of Canada's overall GF Score™ is 57/100 with 8 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 Power of Canada (PWCDF), the current Forward Rate of Return (Yacktman) % is 14.44% 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 Power of Canada (PWCDF) Overvalued in 2026?

Based on GuruFocus' analysis, Power of Canada stock appears to be overvalued. The current stock price of $68.27 is trading 59.7% above its estimated GF Value™ of $42.74. GuruFocus considers Power of Canada to be Significantly Overvalued.

Key valuation signals for PWCDF:

  • Forward Rate of Return (Yacktman) %: 14.44% (63% below median its 10-year median of 39.06)
  • GF Value™: $42.74 vs. price of $68.27 (59.7% above fair value)
  • GF Score™: 57/100 with 8 warning signs
  • Industry Position: 15.7% below the Insurance median (#161 of 280)

No single metric tells the full story. See the PWCDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Power of Canada Business Description

Address 751 Victoria Square, Montreal, QC, CAN, H2Y 2J3
Power Corp. of Canada is a holding company with controlling interests in Great-West Lifeco (one of the big three Canadian life insurers), IGM Financial (Canada's largest nonbank asset manager), and other alternative asset management platforms (Sagard and Power Sustainable). The company also has minority interests in Groupe Bruxelles Lambert, a holding company with interests in European firms.
57GF Score

Get the complete analysis for PWCDF

Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$68.27
Price
$42.74
GF Value