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Andover BancorpANDC 61 Forward Rate of Return (Yacktman) % is 3.54% as of Dec. 2025. GuruFocus rates ANDC with a GF Score™ of 61/100 and a GF Value™ of $22.87 (Fairly Valued). Among 1,415 Banks companies, Andover Bancorp ranks worse than 88.34% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Andover Bancorp's forward rate of return for was 3.54%.
The historical rank and industry rank for Andover Bancorp's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ANDC'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -5.26 Med: -4.2 Max: 3.5
Current: 2.4
During the past 7 years, Andover Bancorp's highest Forward Rate of Return was 3.50. The lowest was -5.26. And the median was -4.20.
ANDC's Forward Rate of Return (Yacktman) % is ranked worse than 88.34% of 1415
companies
in the Banks industry
Industry Median: 15.26
vs ANDC: 2.40
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.
Andover Bancorp (OTCPK:ANDC) 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 Book Value 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.
Andover Bancorp Forward Rate of Return (Yacktman) % Related Terms
Andover Bancorp Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Andover Bancorp'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.
Andover Bancorp Forward Rate of Return (Yacktman) % Chart
ANDC vs SSBP, FMFP, LKSB: Forward Rate of Return (Yacktman) % Comparison
For the Banks - Regional subindustry, Andover Bancorp'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.
Andover Bancorp Forward Rate of Return (Yacktman) % vs Banks Industry
For the Banks industry and Financial Services sector, Andover Bancorp's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Andover Bancorp's Forward Rate of Return (Yacktman) % falls into.
Andover Bancorp 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 3.54% mean?
Andover Bancorp (ANDC) has a Forward Rate of Return (Yacktman) % of 3.54% 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 Andover Bancorp and its competitors. According to the industry distribution chart, Andover Bancorp ranks #1250 out of 1415 companies in the Banks industry, placing it in the top 88.3%.
Is Andover Bancorp's Forward Rate of Return (Yacktman) % too high?
Andover Bancorp's current Forward Rate of Return (Yacktman) % is 3.54%. The Banks industry median Forward Rate of Return (Yacktman) % is 15.26. Andover Bancorp's value of 3.54% is 76.8% below this industry median. Based on the distribution chart, Andover Bancorp ranks #1250 out of 1415 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Andover Bancorp has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Andover Bancorp's Forward Rate of Return (Yacktman) % compare to SSBP and FMFP?
According to the Banks industry distribution chart, Andover Bancorp ranks #1250 out of 1415 companies for Forward Rate of Return (Yacktman) %. This places Andover Bancorp in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 15.26. Andover Bancorp's value of 3.54% is 76.8% below this benchmark. 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 Banks company?
The median Forward Rate of Return (Yacktman) % among Banks companies is 15.26, based on 1,415 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. Andover Bancorp's current Forward Rate of Return (Yacktman) % of 3.54% is 76.8% 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 Andover Bancorp and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Andover Bancorp's current Forward Rate of Return (Yacktman) % is 3.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Andover Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Andover Bancorp (ANDC) is currently considered Fairly Valued. The stock's GF Value™ is $22.87, compared to a current price of $21.00 — trading 8.2% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 3.54% and 76.8% below the Banks industry median of 15.26. Andover Bancorp's overall GF Score™ is 61/100. 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 Andover Bancorp (ANDC), the current Forward Rate of Return (Yacktman) % is 3.54% 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 Andover Bancorp (ANDC) Overvalued in 2026?
Based on GuruFocus' analysis, Andover Bancorp stock appears to be undervalued.
The current stock price of $21.00 is trading 8.2% below its estimated GF Value™ of $22.87.
GuruFocus considers Andover Bancorp to be Fairly Valued.
Key valuation signals for ANDC:
Forward Rate of Return (Yacktman) %: 3.54%
GF Value™: $22.87 vs. price of $21.00 (8.2% below fair value)
Industry Position: 76.8% below the Banks median (#1250 of 1415)
No single metric tells the full story. See the ANDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Andover Bancorp Inc is a United States-based holding company for Andover bank. The bank is a locally owned and independent community bank. The company provides banking services to personal and business customers. The bank provides a full range of banking products, including consumer, mortgage, and commercial loans; checking, savings, and others. The majority of the Company's income is derived from retail lending activities.
61GF 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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