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AB DynamicsABDDF 82 Forward Rate of Return (Yacktman) % is 23.87% as of Aug. 2025, which is 26% above its 10-year median of 18.93. GuruFocus rates ABDDF with a GF Score™ of 82/100 and a GF Value™ of $19.80 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 988 Vehicles & Parts companies, AB Dynamics ranks better than 90.28% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. AB Dynamics's forward rate of return for was 23.87%.
The historical rank and industry rank for AB Dynamics's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ABDDF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 1.27 Med: 18.93 Max: 25.63
Current: 25.21
During the past 13 years, AB Dynamics's highest Forward Rate of Return was 25.63. The lowest was 1.27. And the median was 18.93.
ABDDF's Forward Rate of Return (Yacktman) % is ranked better than 90.28% of 988
companies
in the Vehicles & Parts industry
Industry Median: 10.315
vs ABDDF: 25.21
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.
AB Dynamics (OTCPK:ABDDF) 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.
AB Dynamics Forward Rate of Return (Yacktman) % Related Terms
AB Dynamics Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for AB Dynamics'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.
AB Dynamics Forward Rate of Return (Yacktman) % Chart
ABDDF vs ORLY, AZO, GPC: Forward Rate of Return (Yacktman) % Comparison
For the Auto Parts subindustry, AB Dynamics'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.
AB Dynamics Forward Rate of Return (Yacktman) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, AB Dynamics's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where AB Dynamics's Forward Rate of Return (Yacktman) % falls into.
AB Dynamics 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).
AB Dynamics's Forward Rate of Return of Aug. 2025 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.71466667
/
33
+
0.2
=
22.17 %
* 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 23.87% mean?
AB Dynamics (ABDDF) has a Forward Rate of Return (Yacktman) % of 23.87% as of Aug. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on AB Dynamics and its competitors. This is 26% above median its historical median of 18.93. Over the past decade, AB Dynamics' Forward Rate of Return (Yacktman) % has ranged from 1.27 to 25.63. According to the industry distribution chart, AB Dynamics ranks #96 out of 988 companies in the Vehicles & Parts industry, placing it in the top 9.7%.
Is AB Dynamics' Forward Rate of Return (Yacktman) % too high?
AB Dynamics' current Forward Rate of Return (Yacktman) % of 23.87% is 26% above median its 10-year median of 18.93. Over the past 10 years, this metric has ranged from a low of 1.27 to a high of 25.63. The Vehicles & Parts industry median Forward Rate of Return (Yacktman) % is 10.32. AB Dynamics' value of 23.87% is 131.4% above this industry median. Based on the distribution chart, AB Dynamics ranks #96 out of 988 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, AB Dynamics has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AB Dynamics' Forward Rate of Return (Yacktman) % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, AB Dynamics ranks #96 out of 988 companies for Forward Rate of Return (Yacktman) %. This places AB Dynamics in the top 10% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 10.32. AB Dynamics' value of 23.87% is 131.4% above this benchmark. Historically, AB Dynamics' own Forward Rate of Return (Yacktman) % has ranged from 1.27 to 25.63 over the past decade. While the company's 10-year median is 18.93 vs. the industry median of 10.32, AB Dynamics 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 Vehicles & Parts company?
The median Forward Rate of Return (Yacktman) % among Vehicles & Parts companies is 10.32, based on 988 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. AB Dynamics's current Forward Rate of Return (Yacktman) % of 23.87% is 131.4% 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 AB Dynamics and its competitors. For the Vehicles & Parts industry, the median Forward Rate of Return (Yacktman) % is 10.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AB Dynamics's current Forward Rate of Return (Yacktman) % is 23.87%, which is 26% above median its own 10-year median of 18.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AB Dynamics stock overvalued right now?
Based on GuruFocus' analysis, AB Dynamics (ABDDF) is currently considered Modestly Undervalued. The stock's GF Value™ is $19.80, compared to a current price of $16.18 — trading 18.3% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 23.87%, which is 26% above median its 10-year median of 18.93 and 131.4% above the Vehicles & Parts industry median of 10.32. AB Dynamics' overall GF Score™ is 82/100 with 2 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 AB Dynamics (ABDDF), the current Forward Rate of Return (Yacktman) % is 23.87% as of Aug. 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 AB Dynamics (ABDDF) Overvalued in 2026?
Based on GuruFocus' analysis, AB Dynamics stock appears to be undervalued.
The current stock price of $16.18 is trading 18.3% below its estimated GF Value™ of $19.80.
GuruFocus considers AB Dynamics to be Modestly Undervalued.
Key valuation signals for ABDDF:
Forward Rate of Return (Yacktman) %: 23.87% (26% above median its 10-year median of 18.93)
GF Value™: $19.80 vs. price of $16.18 (18.3% below fair value)
Industry Position: 131.4% above the Vehicles & Parts median (#96 of 988)
No single metric tells the full story. See the ABDDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AB Dynamics PLC supplies measurement and testing equipment to the automotive industry. The principal activity of the Group is the design, manufacture, and supply of testing, simulation and measurement products for the world-wide transport market. The Group's products and services are used for the development of road vehicles, particularly in the areas of active safety and autonomous systems. The Groups segments include: Testing Products, Testing services, and Simulation. Geographically, key revenue is generated from Asia Pacific that includes the United Kingdom, North America, and the Rest of the World.
82GF Score
Get the complete analysis for ABDDF
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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