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Vodacom GroupVODAF 91 Forward Rate of Return (Yacktman) % is 16.19% as of Mar. 2026, which is 39% above its 10-year median of 11.62. GuruFocus rates VODAF with a GF Scoreâ„¢ of 91/100 and a GF Valueâ„¢ of $8.94. The stock has 5 warning signs investors should review. Among 289 Telecommunication Services companies, Vodacom Group ranks better than 64.36% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Vodacom Group's forward rate of return for was 16.19%.
The historical rank and industry rank for Vodacom Group's Forward Rate of Return (Yacktman) % or its related term are showing as below:
VODAF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 8.94 Med: 11.62 Max: 19.12
Current: 15.9
During the past 13 years, Vodacom Group's highest Forward Rate of Return was 19.12. The lowest was 8.94. And the median was 11.62.
VODAF's Forward Rate of Return (Yacktman) % is ranked better than 64.36% of 289
companies
in the Telecommunication Services industry
Industry Median: 12.21
vs VODAF: 15.90
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.
Vodacom Group (OTCPK:VODAF) 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.
Vodacom Group Forward Rate of Return (Yacktman) % Related Terms
Vodacom Group Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Vodacom Group'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.
Vodacom Group Forward Rate of Return (Yacktman) % Chart
VODAF vs VZ, TMUS, T: Forward Rate of Return (Yacktman) % Comparison
For the Telecom Services subindustry, Vodacom Group'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.
Vodacom Group Forward Rate of Return (Yacktman) % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vodacom Group's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Vodacom Group's Forward Rate of Return (Yacktman) % falls into.
Vodacom Group 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).
Vodacom Group's Forward Rate of Return of Mar. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.77533333
/
8.98
+
0.035
=
12.13 %
* 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 16.19% mean?
Vodacom Group (VODAF) has a Forward Rate of Return (Yacktman) % of 16.19% 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 Vodacom Group and its competitors. This is 39% above median its historical median of 11.62. Over the past decade, Vodacom Group's Forward Rate of Return (Yacktman) % has ranged from 8.94 to 19.12. According to the industry distribution chart, Vodacom Group ranks #103 out of 289 companies in the Telecommunication Services industry, placing it in the top 35.6%.
Is Vodacom Group's Forward Rate of Return (Yacktman) % too high?
Vodacom Group's current Forward Rate of Return (Yacktman) % of 16.19% is 39% above median its 10-year median of 11.62. Over the past 10 years, this metric has ranged from a low of 8.94 to a high of 19.12. The Telecommunication Services industry median Forward Rate of Return (Yacktman) % is 12.21. Vodacom Group's value of 16.19% is 32.6% above this industry median. Based on the distribution chart, Vodacom Group ranks #103 out of 289 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Vodacom Group has a GF Scoreâ„¢ of 91/100, reflecting its overall financial health beyond just this single metric.
How does Vodacom Group's Forward Rate of Return (Yacktman) % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Vodacom Group ranks #103 out of 289 companies for Forward Rate of Return (Yacktman) %. This puts Vodacom Group in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 12.21. Vodacom Group's value of 16.19% is 32.6% above this benchmark. Historically, Vodacom Group's own Forward Rate of Return (Yacktman) % has ranged from 8.94 to 19.12 over the past decade. While the company's 10-year median is 11.62 vs. the industry median of 12.21, Vodacom Group 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 Telecommunication Services company?
The median Forward Rate of Return (Yacktman) % among Telecommunication Services companies is 12.21, based on 289 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. Vodacom Group's current Forward Rate of Return (Yacktman) % of 16.19% is 32.6% 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 Vodacom Group and its competitors. For the Telecommunication Services industry, the median Forward Rate of Return (Yacktman) % is 12.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vodacom Group's current Forward Rate of Return (Yacktman) % is 16.19%, which is 39% above median its own 10-year median of 11.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vodacom Group stock overvalued right now?
Vodacom Group (VODAF) has a current Forward Rate of Return (Yacktman) % of 16.19%. The stock's GF Value™ is $8.94, compared to a current price of $8.98 — trading 0.4% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 16.19%, which is 39% above median its 10-year median of 11.62 and 32.6% above the Telecommunication Services industry median of 12.21. Vodacom Group's overall GF Score™ is 91/100 with 5 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 Vodacom Group (VODAF), the current Forward Rate of Return (Yacktman) % is 16.19% 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 Vodacom Group (VODAF) Overvalued in 2026?
Based on GuruFocus' analysis, Vodacom Group stock appears to be overvalued.
The current stock price of $8.98 is trading 0.4% above its estimated GF Value™ of $8.94.
Key valuation signals for VODAF:
Forward Rate of Return (Yacktman) %: 16.19% (39% above median its 10-year median of 11.62)
GF Value™: $8.94 vs. price of $8.98 (0.4% above fair value)
Industry Position: 32.6% above the Telecommunication Services median (#103 of 289)
No single metric tells the full story. See the VODAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vodacom Group Ltd is a telecommunications provider. It is engaged in the provision of a wide range of communications products and services including but not limited to voice, messaging, converged services, broadband, data connectivity, mobile financial services and other value added services. Its segments includes South Africa comprises the information relating to the South African-based cellular network and other business segments. Egypt comprises the information relating to the Egyptian-based cellular network and other business segments. International comprises the segment information relating to the non-South African-based cellular networks in Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo. It generates majority of revenue from South Africa.
91GF 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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