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WESCO InternationalWCC +1.66%84 Forward Rate of Return (Yacktman) % is 11.19% as of Jun. 2026, which is 19% below its 10-year median of 13.78. GuruFocus rates WCC with a GF Score™ of 84/100 and a GF Value™ of $218.09 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 127 Industrial Distribution companies, WESCO International ranks better than 50.39% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. WESCO International's forward rate of return for was 11.19%.
The historical rank and industry rank for WESCO International's Forward Rate of Return (Yacktman) % or its related term are showing as below:
WCC'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.09 Med: 13.78 Max: 26.6
Current: 11.25
During the past 13 years, WESCO International's highest Forward Rate of Return was 26.60. The lowest was 3.09. And the median was 13.78.
WCC's Forward Rate of Return (Yacktman) % is ranked better than 50.39% of 127
companies
in the Industrial Distribution industry
Industry Median: 10.72
vs WCC: 11.25
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.
WESCO International (NYSE:WCC) 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.
WESCO International Forward Rate of Return (Yacktman) % Related Terms
WESCO International Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for WESCO International'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.
WESCO International Forward Rate of Return (Yacktman) % Chart
WCC vs QXO, WSO, AIT: Forward Rate of Return (Yacktman) % Comparison
For the Industrial Distribution subindustry, WESCO International'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.
WESCO International Forward Rate of Return (Yacktman) % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, WESCO International's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where WESCO International's Forward Rate of Return (Yacktman) % falls into.
WESCO International 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 11.19% mean?
WESCO International (WCC) has a Forward Rate of Return (Yacktman) % of 11.19% 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 WESCO International and its competitors. This is 19% below median its historical median of 13.78. Over the past decade, WESCO International's Forward Rate of Return (Yacktman) % has ranged from 3.09 to 26.60. According to the industry distribution chart, WESCO International ranks #63 out of 127 companies in the Industrial Distribution industry, placing it in the top 49.6%.
Is WESCO International's Forward Rate of Return (Yacktman) % too high?
WESCO International's current Forward Rate of Return (Yacktman) % of 11.19% is 19% below median its 10-year median of 13.78. Over the past 10 years, this metric has ranged from a low of 3.09 to a high of 26.60. The Industrial Distribution industry median Forward Rate of Return (Yacktman) % is 10.72. WESCO International's value of 11.19% is 4.4% above this industry median. Based on the distribution chart, WESCO International ranks #63 out of 127 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, WESCO International has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does WESCO International's Forward Rate of Return (Yacktman) % compare to QXO and WSO?
According to the Industrial Distribution industry distribution chart, WESCO International ranks #63 out of 127 companies for Forward Rate of Return (Yacktman) %. This puts WESCO International in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 10.72. WESCO International's value of 11.19% is 4.4% above this benchmark. Historically, WESCO International's own Forward Rate of Return (Yacktman) % has ranged from 3.09 to 26.60 over the past decade. While the company's 10-year median is 13.78 vs. the industry median of 10.72, WESCO International 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 an Industrial Distribution company?
The median Forward Rate of Return (Yacktman) % among Industrial Distribution companies is 10.72, based on 127 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. WESCO International's current Forward Rate of Return (Yacktman) % of 11.19% is 4.4% 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 WESCO International and its competitors. For the Industrial Distribution industry, the median Forward Rate of Return (Yacktman) % is 10.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. WESCO International's current Forward Rate of Return (Yacktman) % is 11.19%, which is 19% below median its own 10-year median of 13.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WESCO International stock overvalued right now?
Based on GuruFocus' analysis, WESCO International (WCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $218.09, compared to a current price of $338.37 — trading 55.2% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 11.19%, which is 19% below median its 10-year median of 13.78 and 4.4% above the Industrial Distribution industry median of 10.72. WESCO International's overall GF Score™ is 84/100 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 WESCO International (WCC), the current Forward Rate of Return (Yacktman) % is 11.19% 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 WESCO International (WCC) Overvalued in 2026?
Based on GuruFocus' analysis, WESCO International stock appears to be overvalued.
The current stock price of $338.37 is trading 55.2% above its estimated GF Value™ of $218.09.
GuruFocus considers WESCO International to be Significantly Overvalued.
Key valuation signals for WCC:
Forward Rate of Return (Yacktman) %: 11.19% (19% below median its 10-year median of 13.78)
GF Value™: $218.09 vs. price of $338.37 (55.2% above fair value)
Industry Position: 4.4% above the Industrial Distribution median (#63 of 127)
No single metric tells the full story. See the WCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wesco can be traced back to the late 1800s but was officially founded in 1922, acting as the distribution arm of Westinghouse Electric. Throughout the 1900s, Wesco entered and subsequently exited the consumer electronics, transit, bottling, and nuclear plant distribution markets. It was sold to a private equity firm in 1994 and then went public in 1999, and numerous acquisitions have since been made to fill the gaps in Wesco's geographical and product coverage. Today, the firm primarily distributes electrical, networking, security, and utility equipment used in the construction and repair of structures such as offices, data centers, power transmission lines, and manufacturing plants. Wesco has operations around the globe but generates the majority of its revenue in the United States.
84GF Score
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