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Sika AGXSWX:SIKA 93 Forward Rate of Return (Yacktman) % is 11.66% as of Dec. 2025, which is 16% below its 10-year median of 13.95. GuruFocus rates XSWX:SIKA with a GF Score™ of 93/100 and a GF Value™ of CHF216.20 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,251 Chemicals companies, Sika AG ranks better than 67.79% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Sika AG's forward rate of return for was 11.66%.
The historical rank and industry rank for Sika AG's Forward Rate of Return (Yacktman) % or its related term are showing as below:
XSWX:SIKA'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 10.92 Med: 13.95 Max: 17.11
Current: 10.92
During the past 13 years, Sika AG's highest Forward Rate of Return was 17.11. The lowest was 10.92. And the median was 13.95.
XSWX:SIKA's Forward Rate of Return (Yacktman) % is ranked better than 67.79% of 1251
companies
in the Chemicals industry
Industry Median: 3.6
vs XSWX:SIKA: 10.92
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.
Sika AG (XSWX:SIKA) 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.
Sika AG Forward Rate of Return (Yacktman) % Related Terms
Sika AG Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Sika 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.
XSWX:SIKA vs LIN, SHW, ECL: Forward Rate of Return (Yacktman) % Comparison
For the Specialty Chemicals subindustry, Sika 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.
Sika AG Forward Rate of Return (Yacktman) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sika AG's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Sika AG's Forward Rate of Return (Yacktman) % falls into.
Sika 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 11.66% mean?
Sika AG (XSWX:SIKA) has a Forward Rate of Return (Yacktman) % of 11.66% 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 Sika AG and its competitors. This is 16% below median its historical median of 13.95. Over the past decade, Sika AG's Forward Rate of Return (Yacktman) % has ranged from 10.92 to 17.11. According to the industry distribution chart, Sika AG ranks #403 out of 1251 companies in the Chemicals industry, placing it in the top 32.2%.
Is Sika AG's Forward Rate of Return (Yacktman) % too high?
Sika AG's current Forward Rate of Return (Yacktman) % of 11.66% is 16% below median its 10-year median of 13.95. Over the past 10 years, this metric has ranged from a low of 10.92 to a high of 17.11. The Chemicals industry median Forward Rate of Return (Yacktman) % is 3.60. Sika AG's value of 11.66% is 223.9% above this industry median. Based on the distribution chart, Sika AG ranks #403 out of 1251 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sika AG has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sika AG's Forward Rate of Return (Yacktman) % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sika AG ranks #403 out of 1251 companies for Forward Rate of Return (Yacktman) %. This puts Sika AG in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 3.60. Sika AG's value of 11.66% is 223.9% above this benchmark. Historically, Sika AG's own Forward Rate of Return (Yacktman) % has ranged from 10.92 to 17.11 over the past decade. While the company's 10-year median is 13.95 vs. the industry median of 3.60, Sika AG 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 Chemicals company?
The median Forward Rate of Return (Yacktman) % among Chemicals companies is 3.60, based on 1,251 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. Sika AG's current Forward Rate of Return (Yacktman) % of 11.66% is 223.9% 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 Sika AG and its competitors. For the Chemicals industry, the median Forward Rate of Return (Yacktman) % is 3.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sika AG's current Forward Rate of Return (Yacktman) % is 11.66%, which is 16% below median its own 10-year median of 13.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sika AG stock overvalued right now?
Based on GuruFocus' analysis, Sika AG (XSWX:SIKA) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF216.20, compared to a current price of CHF193.55 — trading 10.5% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 11.66%, which is 16% below median its 10-year median of 13.95 and 223.9% above the Chemicals industry median of 3.60. Sika AG's overall GF Score™ is 93/100 with 9 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 Sika AG (XSWX:SIKA), the current Forward Rate of Return (Yacktman) % is 11.66% 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 Sika AG (XSWX:SIKA) Overvalued in 2026?
Based on GuruFocus' analysis, Sika AG stock appears to be undervalued.
The current stock price of CHF193.55 is trading 10.5% below its estimated GF Value™ of CHF216.20.
GuruFocus considers Sika AG to be Modestly Undervalued.
Key valuation signals for XSWX:SIKA:
Forward Rate of Return (Yacktman) %: 11.66% (16% below median its 10-year median of 13.95)
GF Value™: CHF216.20 vs. price of CHF193.55 (10.5% below fair value)
Industry Position: 223.9% above the Chemicals median (#403 of 1251)
No single metric tells the full story. See the XSWX:SIKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1910, Sika produces specialty chemicals primarily used by the construction sector (85% of sales). Its products are mainly used for bonding, sealing, reinforcing, and protecting in the construction and automotive industries. Approximately 70% of its products have a positive impact on sustainability for customers. Sika has a global manufacturing footprint of more than 400 factories spread across over 100 countries.
93GF Score
Get the complete analysis for XSWX:SIKA
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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