Melati Ehsan Holdings Bhd (XKLS:5129) Forward Rate of Return (Yacktman) %: -17.70% (As of May. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
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.

XKLS:5129 Melati Ehsan Holdings Bhd XKLS:5129
58 GF Score
Price RM0.50
GF Value RM1.87
Valuation Possible Value Trap
! 7 Warning Signs
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What is Melati Ehsan Holdings Bhd Forward Rate of Return (Yacktman) %?

Melati Ehsan Holdings Bhd XKLS:5129 58 Forward Rate of Return (Yacktman) % is -17.70% as of May. 2026. GuruFocus rates XKLS:5129 with a GF Score™ of 58/100 and a GF Value™ of RM1.87 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,311 Construction companies, Melati Ehsan Holdings Bhd ranks worse than 87.49% on this metric.

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Melati Ehsan Holdings Bhd's forward rate of return for was -17.70%.

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

XKLS:5129' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -43.97   Med: -4.57   Max: 24
Current: -24.38

During the past 13 years, Melati Ehsan Holdings Bhd's highest Forward Rate of Return was 24.00. The lowest was -43.97. And the median was -4.57.

XKLS:5129's Forward Rate of Return (Yacktman) % is ranked worse than
87.49% of 1311 companies
in the Construction industry
Industry Median: 9.19 vs XKLS:5129: -24.38

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.


Melati Ehsan Holdings Bhd  (XKLS:5129) 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.


Melati Ehsan Holdings Bhd Forward Rate of Return (Yacktman) % Related Terms


Melati Ehsan Holdings Bhd Forward Rate of Return (Yacktman) % Historical Data

* Premium members only.

The historical data trend for Melati Ehsan Holdings Bhd'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.

Melati Ehsan Holdings Bhd Forward Rate of Return (Yacktman) % Chart

Melati Ehsan Holdings Bhd Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -28.21 7.00 -4.20 6.75 8.37

Melati Ehsan Holdings Bhd Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
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 -17.51 -16.88 -13.96 -18.65 -17.70

XKLS:5129 vs PWR, FIX, EME: Forward Rate of Return (Yacktman) % Comparison

For the Engineering & Construction subindustry, Melati Ehsan Holdings Bhd'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.


Melati Ehsan Holdings Bhd Forward Rate of Return (Yacktman) % vs Construction Industry

For the Construction industry and Industrials sector, Melati Ehsan Holdings Bhd's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Melati Ehsan Holdings Bhd's Forward Rate of Return (Yacktman) % falls into.


XKLS:5129
58GF Score
Melati Ehsan Holdings Bhd XKLS:5129
Forward Rate of Return (Yacktman) % is just one metric. See GF Score™, valuation, warning signs, and more.
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Melati Ehsan Holdings Bhd 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).

Melati Ehsan Holdings Bhd's Forward Rate of Return of May. 2026 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=-0.08685714/0.51+-0.0067
=-17.70 %

* 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 -17.70% mean?
Melati Ehsan Holdings Bhd (XKLS:5129) has a Forward Rate of Return (Yacktman) % of -17.70% as of May. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Melati Ehsan Holdings Bhd and its competitors. According to the industry distribution chart, Melati Ehsan Holdings Bhd ranks #1147 out of 1311 companies in the Construction industry, placing it in the top 87.5%.
Is Melati Ehsan Holdings Bhd's Forward Rate of Return (Yacktman) % too high?
Melati Ehsan Holdings Bhd's current Forward Rate of Return (Yacktman) % is -17.70%. Based on the distribution chart, Melati Ehsan Holdings Bhd ranks #1147 out of 1311 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Melati Ehsan Holdings Bhd has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Melati Ehsan Holdings Bhd's Forward Rate of Return (Yacktman) % compare to PWR and FIX?
According to the Construction industry distribution chart, Melati Ehsan Holdings Bhd ranks #1147 out of 1311 companies for Forward Rate of Return (Yacktman) %. This places Melati Ehsan Holdings Bhd in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.19. 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 9.19, based on 1,311 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. 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 Melati Ehsan Holdings Bhd and its competitors. For the Construction industry, the median Forward Rate of Return (Yacktman) % is 9.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melati Ehsan Holdings Bhd's current Forward Rate of Return (Yacktman) % is -17.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melati Ehsan Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, Melati Ehsan Holdings Bhd (XKLS:5129) is currently considered Possible Value Trap. The stock's GF Value™ is RM1.87, compared to a current price of RM0.50 — trading 73.3% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is -17.70%. Melati Ehsan Holdings Bhd's overall GF Score™ is 58/100 with 7 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 Melati Ehsan Holdings Bhd (XKLS:5129), the current Forward Rate of Return (Yacktman) % is -17.70% as of May. 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 Melati Ehsan Holdings Bhd (XKLS:5129) Overvalued in 2026?

Based on GuruFocus' analysis, Melati Ehsan Holdings Bhd stock appears to be undervalued. The current stock price of RM0.50 is trading 73.3% below its estimated GF Value™ of RM1.87. GuruFocus considers Melati Ehsan Holdings Bhd to be Possible Value Trap.

Key valuation signals for XKLS:5129:

  • Forward Rate of Return (Yacktman) %: -17.70%
  • GF Value™: RM1.87 vs. price of RM0.50 (73.3% below fair value)
  • GF Score™: 58/100 with 7 warning signs

No single metric tells the full story. See the XKLS:5129 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Melati Ehsan Holdings Bhd Business Description

Address No. 5, Jalan Titiwangsa, Kuala Lumpur, SGR, MYS, 53200
Melati Ehsan Holdings Bhd is a Malaysia-based investment holding company. The principal activities of the company include turnkey contracting, property development, trading of construction materials, rental of machinery, and money-lending services. The Group's reporting segments comprise the Construction segment, which includes turnkey construction activities; the Trading segment, which includes the trading of construction materials and rental of machinery; and the Property Development segment, which relates to the development of residential and commercial properties. The company operates principally in Malaysia and generates the majority of its revenue from the Construction segment.
58GF Score

Get the complete analysis for XKLS:5129

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

RM0.50
Price
RM1.87
GF Value