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AeroVironmentAVAV +2.31%80 Forward Rate of Return (Yacktman) % is 0.00% as of Apr. 2026. GuruFocus rates AVAV with a GF Score™ of 80/100 and a GF Value™ of $257.17 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 202 Aerospace & Defense companies, AeroVironment ranks worse than 63.37% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. AeroVironment's forward rate of return for was 0.00%.
The historical rank and industry rank for AeroVironment's Forward Rate of Return (Yacktman) % or its related term are showing as below:
AVAV'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -1.06 Med: 21 Max: 21.87
Current: -0.23
During the past 13 years, AeroVironment's highest Forward Rate of Return was 21.87. The lowest was -1.06. And the median was 21.00.
AVAV's Forward Rate of Return (Yacktman) % is ranked worse than 63.37% of 202
companies
in the Aerospace & Defense industry
Industry Median: 9.265
vs AVAV: -0.23
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.
AeroVironment (NAS:AVAV) 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.
AeroVironment Forward Rate of Return (Yacktman) % Related Terms
AeroVironment Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for AeroVironment'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.
AeroVironment Forward Rate of Return (Yacktman) % Chart
AVAV vs PL, DPC, HXL: Forward Rate of Return (Yacktman) % Comparison
For the Aerospace & Defense subindustry, AeroVironment'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.
AeroVironment Forward Rate of Return (Yacktman) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AeroVironment's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where AeroVironment's Forward Rate of Return (Yacktman) % falls into.
AeroVironment 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).
AeroVironment's Forward Rate of Return of Apr. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.85504762
/
195.02
+
-0.0074
=
-0.30 %
* 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 0.00% mean?
AeroVironment (AVAV) has a Forward Rate of Return (Yacktman) % of 0.00% as of Apr. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on AeroVironment and its competitors. According to the industry distribution chart, AeroVironment ranks #128 out of 202 companies in the Aerospace & Defense industry, placing it in the top 63.4%.
Is AeroVironment's Forward Rate of Return (Yacktman) % too high?
AeroVironment's current Forward Rate of Return (Yacktman) % is 0.00%. Based on the distribution chart, AeroVironment ranks #128 out of 202 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, AeroVironment has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AeroVironment's Forward Rate of Return (Yacktman) % compare to PL and DPC?
According to the Aerospace & Defense industry distribution chart, AeroVironment ranks #128 out of 202 companies for Forward Rate of Return (Yacktman) %. This places AeroVironment in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.27. 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 9.27, based on 202 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 AeroVironment and its competitors. For the Aerospace & Defense industry, the median Forward Rate of Return (Yacktman) % is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AeroVironment's current Forward Rate of Return (Yacktman) % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AeroVironment stock overvalued right now?
Based on GuruFocus' analysis, AeroVironment (AVAV) is currently considered Possible Value Trap. The stock's GF Value™ is $257.17, compared to a current price of $171.94 — trading 33.1% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 0.00%. AeroVironment's overall GF Score™ is 80/100 with 5 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 AeroVironment (AVAV), the current Forward Rate of Return (Yacktman) % is 0.00% as of Apr. 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 AeroVironment (AVAV) Overvalued in 2026?
Based on GuruFocus' analysis, AeroVironment stock appears to be undervalued.
The current stock price of $171.94 is trading 33.1% below its estimated GF Value™ of $257.17.
GuruFocus considers AeroVironment to be Possible Value Trap.
Key valuation signals for AVAV:
Forward Rate of Return (Yacktman) %: 0.00%
GF Value™: $257.17 vs. price of $171.94 (33.1% below fair value)
No single metric tells the full story. See the AVAV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AeroVironment Inc supplies unmanned aircraft systems, tactical missile systems, high-altitude pseudo-satellites, and other related services to government agencies within the United States Department of Defense as well as the United States allied international governments. The systems can help with security, surveillance, or sensing, and provide eyes in the sky without needing an actual person, or driver in the sky. The company is a defense technology provider delivering integrated capabilities across air, land, sea, space, and cyber. It develops and deploy autonomous systems, precision strike systems, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. Company operates in three segments: UxS, LMS, MW.
80GF 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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