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Analog DevicesADI -1.05%96 Forward Rate of Return (Yacktman) % is 9.48% as of Jul. 2026, which is 38% below its 10-year median of 15.20. GuruFocus rates ADI with a GF Scoreâ„¢ of 96/100 and a GF Valueâ„¢ of $334.99 (Fairly Valued). The stock has 6 warning signs investors should review. Among 611 Semiconductors companies, Analog Devices ranks better than 69.23% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Analog Devices's forward rate of return for was 9.48%.
The historical rank and industry rank for Analog Devices's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ADI'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 1.7 Med: 15.2 Max: 24.67
Current: 9.49
During the past 13 years, Analog Devices's highest Forward Rate of Return was 24.67. The lowest was 1.70. And the median was 15.20.
ADI's Forward Rate of Return (Yacktman) % is ranked better than 69.23% of 611
companies
in the Semiconductors industry
Industry Median: -0.21
vs ADI: 9.49
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.
Analog Devices (NAS:ADI) 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.
Analog Devices Forward Rate of Return (Yacktman) % Related Terms
Analog Devices Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Analog Devices'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.
Analog Devices Forward Rate of Return (Yacktman) % Chart
ADI vs QCOM, MRVL, TXN: Forward Rate of Return (Yacktman) % Comparison
For the Semiconductors subindustry, Analog Devices'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.
Analog Devices Forward Rate of Return (Yacktman) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Analog Devices's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Analog Devices's Forward Rate of Return (Yacktman) % falls into.
Analog Devices 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 9.48% mean?
Analog Devices (ADI) has a Forward Rate of Return (Yacktman) % of 9.48% as of Jul. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Analog Devices and its competitors. This is 38% below median its historical median of 15.20. Over the past decade, Analog Devices' Forward Rate of Return (Yacktman) % has ranged from 1.70 to 24.67. According to the industry distribution chart, Analog Devices ranks #188 out of 611 companies in the Semiconductors industry, placing it in the top 30.8%.
Is Analog Devices' Forward Rate of Return (Yacktman) % too high?
Analog Devices' current Forward Rate of Return (Yacktman) % of 9.48% is 38% below median its 10-year median of 15.20. Over the past 10 years, this metric has ranged from a low of 1.70 to a high of 24.67. Based on the distribution chart, Analog Devices ranks #188 out of 611 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Analog Devices has a GF Scoreâ„¢ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Analog Devices' Forward Rate of Return (Yacktman) % compare to QCOM and MRVL?
According to the Semiconductors industry distribution chart, Analog Devices ranks #188 out of 611 companies for Forward Rate of Return (Yacktman) %. This puts Analog Devices in the upper half of its industry. Historically, Analog Devices' own Forward Rate of Return (Yacktman) % has ranged from 1.70 to 24.67 over the past decade. 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 Semiconductors company?
A good Forward Rate of Return (Yacktman) % depends on the Semiconductors industry context. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Analog Devices and its competitors. Analog Devices's current Forward Rate of Return (Yacktman) % is 9.48%, which is 38% below median its own 10-year median of 15.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Analog Devices stock overvalued right now?
Based on GuruFocus' analysis, Analog Devices (ADI) is currently considered Fairly Valued. The stock's GF Value™ is $334.99, compared to a current price of $361.25 — trading 7.8% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 9.48%, which is 38% below median its 10-year median of 15.20. Analog Devices' overall GF Score™ is 96/100 with 6 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 Analog Devices (ADI), the current Forward Rate of Return (Yacktman) % is 9.48% as of Jul. 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 Analog Devices (ADI) Overvalued in 2026?
Based on GuruFocus' analysis, Analog Devices stock appears to be overvalued.
The current stock price of $361.25 is trading 7.8% above its estimated GF Value™ of $334.99.
GuruFocus considers Analog Devices to be Fairly Valued.
Key valuation signals for ADI:
Forward Rate of Return (Yacktman) %: 9.48% (38% below median its 10-year median of 15.20)
GF Value™: $334.99 vs. price of $361.25 (7.8% above fair value)
No single metric tells the full story. See the ADI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Analog Devices is a leading analog, mixed-signal, and digital-signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers; more than half of its chip sales are to industrial and automotive end markets. ADI's chips are also incorporated into wireless infrastructure equipment.
96GF Score
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