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Zurn Elkay Water SolutionsZWS +0.39%89 Forward Rate of Return (Yacktman) % is 21.39% as of Jun. 2026, which is 179% above its 10-year median of 7.67. GuruFocus rates ZWS with a GF Score™ of 89/100 and a GF Value™ of $43.49 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,154 Industrial Products companies, Zurn Elkay Water Solutions ranks better than 88.53% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Zurn Elkay Water Solutions's forward rate of return for was 21.39%.
The historical rank and industry rank for Zurn Elkay Water Solutions's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ZWS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -26.16 Med: 7.67 Max: 24.81
Current: 21.48
During the past 13 years, Zurn Elkay Water Solutions's highest Forward Rate of Return was 24.81. The lowest was -26.16. And the median was 7.67.
ZWS's Forward Rate of Return (Yacktman) % is ranked better than 88.53% of 2154
companies
in the Industrial Products industry
Industry Median: 7.31
vs ZWS: 21.48
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.
Zurn Elkay Water Solutions (NYSE:ZWS) 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.
Zurn Elkay Water Solutions Forward Rate of Return (Yacktman) % Related Terms
Zurn Elkay Water Solutions Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Zurn Elkay Water Solutions'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.
Zurn Elkay Water Solutions Forward Rate of Return (Yacktman) % Chart
ZWS vs CECO, PCT, ERII: Forward Rate of Return (Yacktman) % Comparison
For the Pollution & Treatment Controls subindustry, Zurn Elkay Water Solutions'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.
Zurn Elkay Water Solutions Forward Rate of Return (Yacktman) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zurn Elkay Water Solutions's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Zurn Elkay Water Solutions's Forward Rate of Return (Yacktman) % falls into.
Zurn Elkay Water Solutions 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 21.39% mean?
Zurn Elkay Water Solutions (ZWS) has a Forward Rate of Return (Yacktman) % of 21.39% 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 Zurn Elkay Water Solutions and its competitors. This is 179% above median its historical median of 7.67. According to the industry distribution chart, Zurn Elkay Water Solutions ranks #247 out of 2154 companies in the Industrial Products industry, placing it in the top 11.5%.
Is Zurn Elkay Water Solutions' Forward Rate of Return (Yacktman) % too high?
Zurn Elkay Water Solutions' current Forward Rate of Return (Yacktman) % of 21.39% is 179% above median its 10-year median of 7.67. The Industrial Products industry median Forward Rate of Return (Yacktman) % is 7.31. Zurn Elkay Water Solutions' value of 21.39% is 192.6% above this industry median. Based on the distribution chart, Zurn Elkay Water Solutions ranks #247 out of 2154 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Zurn Elkay Water Solutions has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zurn Elkay Water Solutions' Forward Rate of Return (Yacktman) % compare to CECO and PCT?
According to the Industrial Products industry distribution chart, Zurn Elkay Water Solutions ranks #247 out of 2154 companies for Forward Rate of Return (Yacktman) %. This places Zurn Elkay Water Solutions in the top 12% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 7.31. Zurn Elkay Water Solutions' value of 21.39% is 192.6% above this benchmark. While the company's 10-year median is 7.67 vs. the industry median of 7.31, Zurn Elkay Water Solutions 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 Products company?
The median Forward Rate of Return (Yacktman) % among Industrial Products companies is 7.31, based on 2,154 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. Zurn Elkay Water Solutions's current Forward Rate of Return (Yacktman) % of 21.39% is 192.6% 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 Zurn Elkay Water Solutions and its competitors. For the Industrial Products industry, the median Forward Rate of Return (Yacktman) % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zurn Elkay Water Solutions's current Forward Rate of Return (Yacktman) % is 21.39%, which is 179% above median its own 10-year median of 7.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zurn Elkay Water Solutions stock overvalued right now?
Based on GuruFocus' analysis, Zurn Elkay Water Solutions (ZWS) is currently considered Modestly Overvalued. The stock's GF Value™ is $43.49, compared to a current price of $49.01 — trading 12.7% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 21.39%, which is 179% above median its 10-year median of 7.67 and 192.6% above the Industrial Products industry median of 7.31. Zurn Elkay Water Solutions' overall GF Score™ is 89/100 with 1 warning sign 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 Zurn Elkay Water Solutions (ZWS), the current Forward Rate of Return (Yacktman) % is 21.39% 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 Zurn Elkay Water Solutions (ZWS) Overvalued in 2026?
Based on GuruFocus' analysis, Zurn Elkay Water Solutions stock appears to be overvalued.
The current stock price of $49.01 is trading 12.7% above its estimated GF Value™ of $43.49.
GuruFocus considers Zurn Elkay Water Solutions to be Modestly Overvalued.
Key valuation signals for ZWS:
Forward Rate of Return (Yacktman) %: 21.39% (179% above median its 10-year median of 7.67)
GF Value™: $43.49 vs. price of $49.01 (12.7% above fair value)
Industry Position: 192.6% above the Industrial Products median (#247 of 2154)
No single metric tells the full story. See the ZWS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zurn Elkay Water Solutions Corp is a growth-oriented, pure-play water management business that designs, procures, manufactures, and markets the broadest sustainable product portfolio of specification-driven water management solutions to improve health, hydration, human safety and the environment. Its product portfolio includes professional grade water safety and control products, flow systems products, hygienic and environmental products, and filtered drinking water products for public and private spaces that deliver superior value to building owners, positively impact the environment and human hygiene and reduce product installation time.
89GF Score
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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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