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Forbo Holding AGXSWX:FORN +1.20%74 Forward Rate of Return (Yacktman) % is 5.14% as of Dec. 2025, which is 49% below its 10-year median of 10.13. GuruFocus rates XSWX:FORN with a GF Score™ of 74/100 and a GF Value™ of CHF880.37 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,294 Construction companies, Forbo Holding AG ranks worse than 53.94% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Forbo Holding AG's forward rate of return for was 5.14%.
The historical rank and industry rank for Forbo Holding AG's Forward Rate of Return (Yacktman) % or its related term are showing as below:
XSWX:FORN'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 0.93 Med: 10.13 Max: 20.79
Current: 6.64
During the past 13 years, Forbo Holding AG's highest Forward Rate of Return was 20.79. The lowest was 0.93. And the median was 10.13.
XSWX:FORN's Forward Rate of Return (Yacktman) % is ranked worse than 53.94% of 1294
companies
in the Construction industry
Industry Median: 8.915
vs XSWX:FORN: 6.64
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.
Forbo Holding AG (XSWX:FORN) 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.
Forbo Holding AG Forward Rate of Return (Yacktman) % Related Terms
Forbo Holding AG Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Forbo Holding 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.
Forbo Holding AG Forward Rate of Return (Yacktman) % Chart
XSWX:FORN vs TT, JCI, CARR: Forward Rate of Return (Yacktman) % Comparison
For the Building Products & Equipment subindustry, Forbo Holding 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.
Forbo Holding AG Forward Rate of Return (Yacktman) % vs Construction Industry
For the Construction industry and Industrials sector, Forbo Holding AG's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Forbo Holding AG's Forward Rate of Return (Yacktman) % falls into.
Forbo Holding 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).
* 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 5.14% mean?
Forbo Holding AG (XSWX:FORN) has a Forward Rate of Return (Yacktman) % of 5.14% 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 Forbo Holding AG and its competitors. This is 49% below median its historical median of 10.13. Over the past decade, Forbo Holding AG's Forward Rate of Return (Yacktman) % has ranged from 0.93 to 20.79. According to the industry distribution chart, Forbo Holding AG ranks #698 out of 1294 companies in the Construction industry, placing it in the top 53.9%.
Is Forbo Holding AG's Forward Rate of Return (Yacktman) % too high?
Forbo Holding AG's current Forward Rate of Return (Yacktman) % of 5.14% is 49% below median its 10-year median of 10.13. Over the past 10 years, this metric has ranged from a low of 0.93 to a high of 20.79. The Construction industry median Forward Rate of Return (Yacktman) % is 8.92. Forbo Holding AG's value of 5.14% is 42.3% below this industry median. Based on the distribution chart, Forbo Holding AG ranks #698 out of 1294 companies in the Construction industry, which is below the industry midpoint. Overall, Forbo Holding AG has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Forbo Holding AG's Forward Rate of Return (Yacktman) % compare to TT and JCI?
According to the Construction industry distribution chart, Forbo Holding AG ranks #698 out of 1294 companies for Forward Rate of Return (Yacktman) %. This places Forbo Holding AG in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.92. Forbo Holding AG's value of 5.14% is 42.3% below this benchmark. Historically, Forbo Holding AG's own Forward Rate of Return (Yacktman) % has ranged from 0.93 to 20.79 over the past decade. While the company's 10-year median is 10.13 vs. the industry median of 8.92, Forbo Holding AG has consistently been below 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 8.92, 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. Forbo Holding AG's current Forward Rate of Return (Yacktman) % of 5.14% is 42.3% 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 Forbo Holding AG and its competitors. For the Construction industry, the median Forward Rate of Return (Yacktman) % is 8.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forbo Holding AG's current Forward Rate of Return (Yacktman) % is 5.14%, which is 49% below median its own 10-year median of 10.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forbo Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Forbo Holding AG (XSWX:FORN) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF880.37, compared to a current price of CHF762.00 — trading 13.4% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 5.14%, which is 49% below median its 10-year median of 10.13 and 42.3% below the Construction industry median of 8.92. Forbo Holding AG's overall GF Score™ is 74/100 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 Forbo Holding AG (XSWX:FORN), the current Forward Rate of Return (Yacktman) % is 5.14% 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 Forbo Holding AG (XSWX:FORN) Overvalued in 2026?
Based on GuruFocus' analysis, Forbo Holding AG stock appears to be undervalued.
The current stock price of CHF762.00 is trading 13.4% below its estimated GF Value™ of CHF880.37.
GuruFocus considers Forbo Holding AG to be Modestly Undervalued.
Key valuation signals for XSWX:FORN:
Forward Rate of Return (Yacktman) %: 5.14% (49% below median its 10-year median of 10.13)
GF Value™: CHF880.37 vs. price of CHF762.00 (13.4% below fair value)
Industry Position: 42.3% below the Construction median (#698 of 1294)
No single metric tells the full story. See the XSWX:FORN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forbo Holding AG manufactures and sells flooring and movement systems. The company organizes itself into two segments based on product type. The Flooring Systems segment, which generates the majority of revenue, sells commercial and residential floor coverings, entrance flooring systems, and building and construction flooring adhesives to the construction and remodeling industries. The Movement Systems segment sells conveyor and processing belts, plastic modular belts, power transmission belts, and flat modular belts, to the food, automotive, and fitness equipment industries. The majority of revenue comes from Europe, and also has its presence in Americas and Asia/Pacific and Africa.
74GF Score
Get the complete analysis for XSWX:FORN
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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