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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Clariant AG's forward rate of return for was 2.43%.
The historical rank and industry rank for Clariant AG's Forward Rate of Return (Yacktman) % or its related term are showing as below:
XSWX:CLN'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -7.21 Med: -0.49 Max: 10.17
Current: 2.16
During the past 13 years, Clariant AG's highest Forward Rate of Return was 10.17. The lowest was -7.21. And the median was -0.49.
XSWX:CLN's Forward Rate of Return (Yacktman) % is ranked worse than 52.91% of 1255
companies
in the Chemicals industry
Industry Median: 3.79
vs XSWX:CLN: 2.16
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.
Clariant AG (XSWX:CLN) 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.
Clariant AG Forward Rate of Return (Yacktman) % Related Terms
Clariant AG Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Clariant AG'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.
Clariant AG Forward Rate of Return (Yacktman) % Chart
XSWX:CLN vs LIN, SHW, ECL: Forward Rate of Return (Yacktman) % Comparison
For the Specialty Chemicals subindustry, Clariant AG'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.
Clariant AG Forward Rate of Return (Yacktman) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Clariant AG's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Clariant AG's Forward Rate of Return (Yacktman) % falls into.
Clariant AG 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).
Clariant AG's Forward Rate of Return of Dec. 2025 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.53383333
/
7.16
+
-0.0503
=
2.43 %
* 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 2.43% mean?
Clariant AG (XSWX:CLN) has a Forward Rate of Return (Yacktman) % of 2.43% as of Dec. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Clariant AG and its competitors. According to the industry distribution chart, Clariant AG ranks #664 out of 1255 companies in the Chemicals industry, placing it in the top 52.9%.
Is Clariant AG's Forward Rate of Return (Yacktman) % too high?
Clariant AG's current Forward Rate of Return (Yacktman) % is 2.43%. The Chemicals industry median Forward Rate of Return (Yacktman) % is 3.79. Clariant AG's value of 2.43% is 35.9% below this industry median. Based on the distribution chart, Clariant AG ranks #664 out of 1255 companies in the Chemicals industry, which is below the industry midpoint. Overall, Clariant AG has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Clariant AG's Forward Rate of Return (Yacktman) % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Clariant AG ranks #664 out of 1255 companies for Forward Rate of Return (Yacktman) %. This places Clariant AG in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 3.79. Clariant AG's value of 2.43% is 35.9% below this benchmark. 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 Chemicals company?
The median Forward Rate of Return (Yacktman) % among Chemicals companies is 3.79, based on 1,255 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. Clariant AG's current Forward Rate of Return (Yacktman) % of 2.43% is 35.9% 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 Clariant AG and its competitors. For the Chemicals industry, the median Forward Rate of Return (Yacktman) % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clariant AG's current Forward Rate of Return (Yacktman) % is 2.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clariant AG stock overvalued right now?
Based on GuruFocus' analysis, Clariant AG (XSWX:CLN) is currently considered Fairly Valued. The stock's GF Value™ is CHF9.87, compared to a current price of CHF9.63 — trading 2.4% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 2.43% and 35.9% below the Chemicals industry median of 3.79. Clariant AG's overall GF Score™ is 63/100 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 Clariant AG (XSWX:CLN), the current Forward Rate of Return (Yacktman) % is 2.43% as of Dec. 2025. 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 Clariant AG (XSWX:CLN) Overvalued in 2026?
Based on GuruFocus' analysis, Clariant AG stock appears to be undervalued.
The current stock price of CHF9.63 is trading 2.4% below its estimated GF Value™ of CHF9.87.
GuruFocus considers Clariant AG to be Fairly Valued.
Key valuation signals for XSWX:CLN:
Forward Rate of Return (Yacktman) %: 2.43%
GF Value™: CHF9.87 vs. price of CHF9.63 (2.4% below fair value)
Industry Position: 35.9% below the Chemicals median (#664 of 1255)
No single metric tells the full story. See the XSWX:CLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clariant AG is a Switzerland-based specialty chemicals company with world-wide operations. It develops, manufactures, distributes, and sells a broad range of specialty chemicals, which play a key role in its customers' manufacturing and treatment processes or add value to their end products. The company reports in three business areas: care chemicals, absorbents and additives and catalysts. Care chemicals mainly targets consumer end markets such as personal care and homecare, but it also has an industrial component. Absorbents and additives encompass Clariant's coatings and adhesives, absorbents, and plastics segments. Catalysts manufacturers process catalysts, mainly for petrochemical and syngas plants.
63GF Score
Get the complete analysis for XSWX:CLN
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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