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Sterling InfrastructureSTRL +0.29%79 Forward Rate of Return (Yacktman) % is 21.24% as of Jun. 2026, which is 19% below its 10-year median of 26.08. GuruFocus rates STRL with a GF Score™ of 79/100 and a GF Value™ of $280.70 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,294 Construction companies, Sterling Infrastructure ranks better than 83.08% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Sterling Infrastructure's forward rate of return for was 21.24%.
The historical rank and industry rank for Sterling Infrastructure's Forward Rate of Return (Yacktman) % or its related term are showing as below:
STRL'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 21.12 Med: 26.08 Max: 31.64
Current: 21.97
During the past 13 years, Sterling Infrastructure's highest Forward Rate of Return was 31.64. The lowest was 21.12. And the median was 26.08.
STRL's Forward Rate of Return (Yacktman) % is ranked better than 83.08% of 1294
companies
in the Construction industry
Industry Median: 8.625
vs STRL: 21.97
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.
Sterling Infrastructure (NAS:STRL) 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.
Sterling Infrastructure Forward Rate of Return (Yacktman) % Related Terms
Sterling Infrastructure Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Sterling Infrastructure'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.
Sterling Infrastructure Forward Rate of Return (Yacktman) % Chart
STRL vs APG, J, MTZ: Forward Rate of Return (Yacktman) % Comparison
For the Engineering & Construction subindustry, Sterling Infrastructure'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.
Sterling Infrastructure Forward Rate of Return (Yacktman) % vs Construction Industry
For the Construction industry and Industrials sector, Sterling Infrastructure's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Sterling Infrastructure's Forward Rate of Return (Yacktman) % falls into.
Sterling Infrastructure 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 21.24% mean?
Sterling Infrastructure (STRL) has a Forward Rate of Return (Yacktman) % of 21.24% 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 Sterling Infrastructure and its competitors. This is 19% below median its historical median of 26.08. Over the past decade, Sterling Infrastructure's Forward Rate of Return (Yacktman) % has ranged from 21.12 to 31.64. According to the industry distribution chart, Sterling Infrastructure ranks #219 out of 1294 companies in the Construction industry, placing it in the top 16.9%.
Is Sterling Infrastructure's Forward Rate of Return (Yacktman) % too high?
Sterling Infrastructure's current Forward Rate of Return (Yacktman) % of 21.24% is 19% below median its 10-year median of 26.08. Over the past 10 years, this metric has ranged from a low of 21.12 to a high of 31.64. The Construction industry median Forward Rate of Return (Yacktman) % is 8.63. Sterling Infrastructure's value of 21.24% is 146.3% above this industry median. Based on the distribution chart, Sterling Infrastructure ranks #219 out of 1294 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Sterling Infrastructure has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sterling Infrastructure's Forward Rate of Return (Yacktman) % compare to APG and J?
According to the Construction industry distribution chart, Sterling Infrastructure ranks #219 out of 1294 companies for Forward Rate of Return (Yacktman) %. This places Sterling Infrastructure in the top 17% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 8.63. Sterling Infrastructure's value of 21.24% is 146.3% above this benchmark. Historically, Sterling Infrastructure's own Forward Rate of Return (Yacktman) % has ranged from 21.12 to 31.64 over the past decade. While the company's 10-year median is 26.08 vs. the industry median of 8.63, Sterling Infrastructure 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 Construction company?
The median Forward Rate of Return (Yacktman) % among Construction companies is 8.63, based on 1,294 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. Sterling Infrastructure's current Forward Rate of Return (Yacktman) % of 21.24% is 146.3% 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 Sterling Infrastructure and its competitors. For the Construction industry, the median Forward Rate of Return (Yacktman) % is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Infrastructure's current Forward Rate of Return (Yacktman) % is 21.24%, which is 19% below median its own 10-year median of 26.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Infrastructure stock overvalued right now?
Based on GuruFocus' analysis, Sterling Infrastructure (STRL) is currently considered Significantly Overvalued. The stock's GF Value™ is $280.70, compared to a current price of $530.03 — trading 88.8% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 21.24%, which is 19% below median its 10-year median of 26.08 and 146.3% above the Construction industry median of 8.63. Sterling Infrastructure's overall GF Score™ is 79/100 with 3 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 Sterling Infrastructure (STRL), the current Forward Rate of Return (Yacktman) % is 21.24% 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 Sterling Infrastructure (STRL) Overvalued in 2026?
Based on GuruFocus' analysis, Sterling Infrastructure stock appears to be overvalued.
The current stock price of $530.03 is trading 88.8% above its estimated GF Value™ of $280.70.
GuruFocus considers Sterling Infrastructure to be Significantly Overvalued.
Key valuation signals for STRL:
Forward Rate of Return (Yacktman) %: 21.24% (19% below median its 10-year median of 26.08)
GF Value™: $280.70 vs. price of $530.03 (88.8% above fair value)
Industry Position: 146.3% above the Construction median (#219 of 1294)
No single metric tells the full story. See the STRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterling Infrastructure Inc operates through subsidiaries within three segments: E-Infrastructure, Transportation, and Building Solutions in the United States, mainly across the Southern, Northeastern, Mid-Atlantic, and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions generates maximum revenue and provides site development and mission-critical electrical services for data centers, manufacturing, distribution centers, warehousing, and power generation. Transportation Solutions includes infrastructure and rehabilitation projects for highways, airports, ports, rail, and storm drainage systems. Building Solutions includes residential and commercial concrete foundations, parking structures, plumbing services, and surveys for new single-family residential builds.
79GF Score
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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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