Avio SpAAVVOF 53 Forward Rate of Return (Yacktman) % is 5.25% as of Dec. 2025, which is 17% above its 10-year median of 4.47. GuruFocus rates AVVOF with a GF Score™ of 53/100 and a GF Value™ of $16.54 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 203 Aerospace & Defense companies, Avio SpA ranks worse than 56.65% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Avio SpA's forward rate of return for was 5.25%.
The historical rank and industry rank for Avio SpA's Forward Rate of Return (Yacktman) % or its related term are showing as below:
AVVOF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -4.68 Med: 4.47 Max: 5.34
Current: 5.07
During the past 12 years, Avio SpA's highest Forward Rate of Return was 5.34. The lowest was -4.68. And the median was 4.47.
AVVOF's Forward Rate of Return (Yacktman) % is ranked worse than 56.65% of 203
companies
in the Aerospace & Defense industry
Industry Median: 9.37
vs AVVOF: 5.07
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.
Avio SpA (OTCPK:AVVOF) 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.
Avio SpA Forward Rate of Return (Yacktman) % Related Terms
Avio SpA Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Avio SpA'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.
Avio SpA Forward Rate of Return (Yacktman) % Chart
AVVOF vs SPCX, GE, RTX: Forward Rate of Return (Yacktman) % Comparison
For the Aerospace & Defense subindustry, Avio SpA'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.
Avio SpA Forward Rate of Return (Yacktman) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Avio SpA's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Avio SpA's Forward Rate of Return (Yacktman) % falls into.
Avio SpA 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 5.25% mean?
Avio SpA (AVVOF) has a Forward Rate of Return (Yacktman) % of 5.25% 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 Avio SpA and its competitors. This is 17% above median its historical median of 4.47. According to the industry distribution chart, Avio SpA ranks #115 out of 203 companies in the Aerospace & Defense industry, placing it in the top 56.7%.
Is Avio SpA's Forward Rate of Return (Yacktman) % too high?
Avio SpA's current Forward Rate of Return (Yacktman) % of 5.25% is 17% above median its 10-year median of 4.47. The Aerospace & Defense industry median Forward Rate of Return (Yacktman) % is 9.37. Avio SpA's value of 5.25% is 44% below this industry median. Based on the distribution chart, Avio SpA ranks #115 out of 203 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Avio SpA has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avio SpA's Forward Rate of Return (Yacktman) % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Avio SpA ranks #115 out of 203 companies for Forward Rate of Return (Yacktman) %. This places Avio SpA in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.37. Avio SpA's value of 5.25% is 44% below this benchmark. While the company's 10-year median is 4.47 vs. the industry median of 9.37, Avio SpA has consistently been below 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 an Aerospace & Defense company?
The median Forward Rate of Return (Yacktman) % among Aerospace & Defense companies is 9.37, 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. Avio SpA's current Forward Rate of Return (Yacktman) % of 5.25% is 44% 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 Avio SpA and its competitors. For the Aerospace & Defense industry, the median Forward Rate of Return (Yacktman) % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avio SpA's current Forward Rate of Return (Yacktman) % is 5.25%, which is 17% above median its own 10-year median of 4.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avio SpA stock overvalued right now?
Based on GuruFocus' analysis, Avio SpA (AVVOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $16.54, compared to a current price of $35.95 — trading 117.4% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 5.25%, which is 17% above median its 10-year median of 4.47 and 44% below the Aerospace & Defense industry median of 9.37. Avio SpA's overall GF Score™ is 53/100 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 Avio SpA (AVVOF), the current Forward Rate of Return (Yacktman) % is 5.25% 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 Avio SpA (AVVOF) Overvalued in 2026?
Based on GuruFocus' analysis, Avio SpA stock appears to be overvalued.
The current stock price of $35.95 is trading 117.4% above its estimated GF Value™ of $16.54.
GuruFocus considers Avio SpA to be Significantly Overvalued.
Key valuation signals for AVVOF:
Forward Rate of Return (Yacktman) %: 5.25% (17% above median its 10-year median of 4.47)
GF Value™: $16.54 vs. price of $35.95 (117.4% above fair value)
Industry Position: 44% below the Aerospace & Defense median (#115 of 203)
No single metric tells the full story. See the AVVOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avio SpA is an international group engaged in the construction and development of space launchers. The company's core operations are design, development and production of solid and liquid propellant propulsion systems for space launchers; design, development and production of solid propellant propulsion systems for tactical missiles; development, integration and supply of complete light space launchers (VEGA); research and development of new low environmental impact propulsion systems and of satellite tracking control engines. The Group mainly operates in EU countries (Italy, France), the USA, and French Guiana.
53GF Score
Get the complete analysis for AVVOF
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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