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AustalASX:ASB -0.84%74 Forward Rate of Return (Yacktman) % is -2.96% as of Jun. 2025. GuruFocus rates ASX:ASB with a GF Score™ of 74/100 and a GF Value™ of A$3.10 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 203 Aerospace & Defense companies, Austal ranks worse than 67% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Austal's forward rate of return for was -2.96%.
The historical rank and industry rank for Austal's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ASX:ASB'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -9.66 Med: -2.83 Max: 21.14
Current: -2.18
During the past 13 years, Austal's highest Forward Rate of Return was 21.14. The lowest was -9.66. And the median was -2.83.
ASX:ASB's Forward Rate of Return (Yacktman) % is ranked worse than 67% of 203
companies
in the Aerospace & Defense industry
Industry Median: 9.44
vs ASX:ASB: -2.18
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.
Austal (ASX:ASB) 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.
Austal Forward Rate of Return (Yacktman) % Related Terms
Austal Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Austal'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.
ASX:ASB vs SPCX, GE, RTX: Forward Rate of Return (Yacktman) % Comparison
For the Aerospace & Defense subindustry, Austal'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.
Austal Forward Rate of Return (Yacktman) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Austal's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Austal's Forward Rate of Return (Yacktman) % falls into.
Austal 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 -2.96% mean?
Austal (ASX:ASB) has a Forward Rate of Return (Yacktman) % of -2.96% as of Jun. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Austal and its competitors. According to the industry distribution chart, Austal ranks #136 out of 203 companies in the Aerospace & Defense industry, placing it in the top 67%.
Is Austal's Forward Rate of Return (Yacktman) % too high?
Austal's current Forward Rate of Return (Yacktman) % is -2.96%. Based on the distribution chart, Austal ranks #136 out of 203 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Austal has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Austal's Forward Rate of Return (Yacktman) % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Austal ranks #136 out of 203 companies for Forward Rate of Return (Yacktman) %. This places Austal in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.44. 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 Aerospace & Defense company?
The median Forward Rate of Return (Yacktman) % among Aerospace & Defense companies is 9.44, based on 203 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. 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 Austal and its competitors. For the Aerospace & Defense industry, the median Forward Rate of Return (Yacktman) % is 9.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Austal's current Forward Rate of Return (Yacktman) % is -2.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Austal stock overvalued right now?
Based on GuruFocus' analysis, Austal (ASX:ASB) is currently considered Modestly Overvalued. The stock's GF Value™ is A$3.10, compared to a current price of A$3.53 — trading 13.9% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is -2.96%. Austal's overall GF Score™ is 74/100 with 4 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 Austal (ASX:ASB), the current Forward Rate of Return (Yacktman) % is -2.96% as of Jun. 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 Austal (ASX:ASB) Overvalued in 2026?
Based on GuruFocus' analysis, Austal stock appears to be overvalued.
The current stock price of A$3.53 is trading 13.9% above its estimated GF Value™ of A$3.10.
GuruFocus considers Austal to be Modestly Overvalued.
Key valuation signals for ASX:ASB:
Forward Rate of Return (Yacktman) %: -2.96%
GF Value™: A$3.10 vs. price of A$3.53 (13.9% above fair value)
No single metric tells the full story. See the ASX:ASB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Austal Ltd is engaged in designing, constructing, and supporting revolutionary defense and commercial vessels. The company designs, constructs, and supports passenger ferries, vehicle passenger ferries, and offshore and windfarm vessels; naval vessels; naval surface warfare combatants; and patrol boats for government law enforcement and border protection agencies. Its reportable segments are USA Shipbuilding; USA Support; Australasia Shipbuilding and Australasia Support. Maximum revenue is generated from its USA Shipbuilding segment which manufactures high performance defence vessels for U.S. Navy and Coast Guard. Geographically, the company derives a majority of its revenue from the United States of America and the rest from Australia, Europe, Asia, South America, and the Middle East.
74GF Score
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