Arab Banking (BSC) (BAH:ABC) Forward Rate of Return (Yacktman) %: 227.15% (As of Mar. 2026) — 677% Above Median

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Director of Data and Quant Analytics at GuruFocus
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BAH:ABC Arab Banking Corp (BSC) BAH:ABC
27 GF Score
Price $0.30
GF Value $0.38
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Arab Banking (BSC) Forward Rate of Return (Yacktman) %?

Arab Banking (BSC) BAH:ABC 27 Forward Rate of Return (Yacktman) % is 227.15% as of Mar. 2026, which is 677% above its 10-year median of 29.24. GuruFocus rates BAH:ABC with a GF Score™ of 27/100 and a GF Value™ of $0.38 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,414 Banks companies, Arab Banking (BSC) ranks better than 98.94% on this metric.

Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Arab Banking (BSC)'s forward rate of return for was 227.15%.

The historical rank and industry rank for Arab Banking (BSC)'s Forward Rate of Return (Yacktman) % or its related term are showing as below:

BAH:ABC' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -60.93   Med: 29.24   Max: 306.24
Current: 245.06

During the past 13 years, Arab Banking (BSC)'s highest Forward Rate of Return was 306.24. The lowest was -60.93. And the median was 29.24.

BAH:ABC's Forward Rate of Return (Yacktman) % is ranked better than
98.94% of 1414 companies
in the Banks industry
Industry Median: 15.32 vs BAH:ABC: 245.06

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.


Arab Banking (BSC)  (BAH:ABC) 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.


Arab Banking (BSC) Forward Rate of Return (Yacktman) % Related Terms


Arab Banking (BSC) Forward Rate of Return (Yacktman) % Historical Data

* Premium members only.

The historical data trend for Arab Banking (BSC)'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.

Arab Banking (BSC) Forward Rate of Return (Yacktman) % Chart

Arab Banking (BSC) Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Forward Rate of Return (Yacktman) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 281.16

Arab Banking (BSC) Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Forward Rate of Return (Yacktman) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 230.82 227.99 281.16 227.15

BAH:ABC vs JPM, BAC, WFC: Forward Rate of Return (Yacktman) % Comparison

For the Banks - Diversified subindustry, Arab Banking (BSC)'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.


Arab Banking (BSC) Forward Rate of Return (Yacktman) % vs Banks Industry

For the Banks industry and Financial Services sector, Arab Banking (BSC)'s Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Arab Banking (BSC)'s Forward Rate of Return (Yacktman) % falls into.


BAH:ABC
27GF Score
Arab Banking Corp (BSC) BAH:ABC
Forward Rate of Return (Yacktman) % is just one metric. See GF Score™, valuation, warning signs, and more.
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Arab Banking (BSC) 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).

Arab Banking (BSC)'s Forward Rate of Return of Mar. 2026 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=0.72533333/0.324+0.0328
=227.15 %

* 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 227.15% mean?
Arab Banking (BSC) (BAH:ABC) has a Forward Rate of Return (Yacktman) % of 227.15% as of Mar. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Arab Banking (BSC) and its competitors. This is 677% above median its historical median of 29.24. According to the industry distribution chart, Arab Banking (BSC) ranks #15 out of 1414 companies in the Banks industry, placing it in the top 1.1%.
Is Arab Banking (BSC)'s Forward Rate of Return (Yacktman) % too high?
Arab Banking (BSC)'s current Forward Rate of Return (Yacktman) % of 227.15% is 677% above median its 10-year median of 29.24. The Banks industry median Forward Rate of Return (Yacktman) % is 15.32. Arab Banking (BSC)'s value of 227.15% is 1382.7% above this industry median. Based on the distribution chart, Arab Banking (BSC) ranks #15 out of 1414 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Arab Banking (BSC) has a GF Score™ of 27/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arab Banking (BSC)'s Forward Rate of Return (Yacktman) % compare to JPM and BAC?
According to the Banks industry distribution chart, Arab Banking (BSC) ranks #15 out of 1414 companies for Forward Rate of Return (Yacktman) %. This places Arab Banking (BSC) in the top 1% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 15.32. Arab Banking (BSC)'s value of 227.15% is 1382.7% above this benchmark. While the company's 10-year median is 29.24 vs. the industry median of 15.32, Arab Banking (BSC) has consistently been above 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 a Banks company?
The median Forward Rate of Return (Yacktman) % among Banks companies is 15.32, based on 1,414 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. Arab Banking (BSC)'s current Forward Rate of Return (Yacktman) % of 227.15% is 1382.7% above 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 Arab Banking (BSC) and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arab Banking (BSC)'s current Forward Rate of Return (Yacktman) % is 227.15%, which is 677% above median its own 10-year median of 29.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arab Banking (BSC) stock overvalued right now?
Based on GuruFocus' analysis, Arab Banking (BSC) (BAH:ABC) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.38, compared to a current price of $0.30 — trading 21.1% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 227.15%, which is 677% above median its 10-year median of 29.24 and 1382.7% above the Banks industry median of 15.32. Arab Banking (BSC)'s overall GF Score™ is 27/100 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 Arab Banking (BSC) (BAH:ABC), the current Forward Rate of Return (Yacktman) % is 227.15% as of Mar. 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 Arab Banking (BSC) (BAH:ABC) Overvalued in 2026?

Based on GuruFocus' analysis, Arab Banking (BSC) stock appears to be undervalued. The current stock price of $0.30 is trading 21.1% below its estimated GF Value™ of $0.38. GuruFocus considers Arab Banking (BSC) to be Modestly Undervalued.

Key valuation signals for BAH:ABC:

  • Forward Rate of Return (Yacktman) %: 227.15% (677% above median its 10-year median of 29.24)
  • GF Value™: $0.38 vs. price of $0.30 (21.1% below fair value)
  • GF Score™: 27/100 with 4 warning signs
  • Industry Position: 1382.7% above the Banks median (#15 of 1414)

No single metric tells the full story. See the BAH:ABC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arab Banking (BSC) Business Description

Address Road 1703, Diplomatic Area, P.O. Box 5698, Bank ABC Tower, Building 152, Block 317, Manama, BHR
Arab Banking Corp (BSC) is an international bank registered in the Kingdom of Bahrain. It acts as a provider of trade finance, treasury, project & structured finance, syndications, corporate and institutional banking as well as Islamic banking services. It operates its business across the globe, covering countries in the Middle East, North Africa, Europe, the Americas, and Asia. The group is organized into five operating segments: MENA subsidiaries, International wholesale banking, Group treasury, ABC Brasil, and Others. It generates the majority of its revenue from ABC Brasil. The company operates in Bahrain, Europe, Brasil, and Other, with the majority of revenue from Brasil.
27GF 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.

$0.30
Price
$0.38
GF Value