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FactSet Research SystemsFDS -0.05%89 Forward Rate of Return (Yacktman) % is 19.96% as of May. 2026, which is 51% above its 10-year median of 13.23. GuruFocus rates FDS with a GF Score™ of 89/100 and a GF Value™ of $518.44 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 512 Capital Markets companies, FactSet Research Systems ranks better than 71.48% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. FactSet Research Systems's forward rate of return for was 19.96%.
The historical rank and industry rank for FactSet Research Systems's Forward Rate of Return (Yacktman) % or its related term are showing as below:
FDS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 11.24 Med: 13.23 Max: 21.33
Current: 18.81
During the past 13 years, FactSet Research Systems's highest Forward Rate of Return was 21.33. The lowest was 11.24. And the median was 13.23.
FDS's Forward Rate of Return (Yacktman) % is ranked better than 71.48% of 512
companies
in the Capital Markets industry
Industry Median: 9.49
vs FDS: 18.81
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.
FactSet Research Systems (NYSE:FDS) 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.
FactSet Research Systems Forward Rate of Return (Yacktman) % Related Terms
FactSet Research Systems Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for FactSet Research Systems'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.
FactSet Research Systems Forward Rate of Return (Yacktman) % Chart
FDS vs MORN, TRU, OTCM: Forward Rate of Return (Yacktman) % Comparison
For the Financial Data & Stock Exchanges subindustry, FactSet Research Systems'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.
FactSet Research Systems Forward Rate of Return (Yacktman) % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, FactSet Research Systems's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where FactSet Research Systems's Forward Rate of Return (Yacktman) % falls into.
FactSet Research Systems 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 19.96% mean?
FactSet Research Systems (FDS) has a Forward Rate of Return (Yacktman) % of 19.96% as of May. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on FactSet Research Systems and its competitors. This is 51% above median its historical median of 13.23. Over the past decade, FactSet Research Systems' Forward Rate of Return (Yacktman) % has ranged from 11.24 to 21.33. According to the industry distribution chart, FactSet Research Systems ranks #146 out of 512 companies in the Capital Markets industry, placing it in the top 28.5%.
Is FactSet Research Systems' Forward Rate of Return (Yacktman) % too high?
FactSet Research Systems' current Forward Rate of Return (Yacktman) % of 19.96% is 51% above median its 10-year median of 13.23. Over the past 10 years, this metric has ranged from a low of 11.24 to a high of 21.33. The Capital Markets industry median Forward Rate of Return (Yacktman) % is 9.49. FactSet Research Systems' value of 19.96% is 110.3% above this industry median. Based on the distribution chart, FactSet Research Systems ranks #146 out of 512 companies in the Capital Markets industry, which is above the industry midpoint. Overall, FactSet Research Systems has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does FactSet Research Systems' Forward Rate of Return (Yacktman) % compare to MORN and TRU?
According to the Capital Markets industry distribution chart, FactSet Research Systems ranks #146 out of 512 companies for Forward Rate of Return (Yacktman) %. This puts FactSet Research Systems in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.49. FactSet Research Systems' value of 19.96% is 110.3% above this benchmark. Historically, FactSet Research Systems' own Forward Rate of Return (Yacktman) % has ranged from 11.24 to 21.33 over the past decade. While the company's 10-year median is 13.23 vs. the industry median of 9.49, FactSet Research Systems 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 Capital Markets company?
The median Forward Rate of Return (Yacktman) % among Capital Markets companies is 9.49, based on 512 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. FactSet Research Systems's current Forward Rate of Return (Yacktman) % of 19.96% is 110.3% 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 FactSet Research Systems and its competitors. For the Capital Markets industry, the median Forward Rate of Return (Yacktman) % is 9.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FactSet Research Systems's current Forward Rate of Return (Yacktman) % is 19.96%, which is 51% above median its own 10-year median of 13.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FactSet Research Systems stock overvalued right now?
Based on GuruFocus' analysis, FactSet Research Systems (FDS) is currently considered Significantly Undervalued. The stock's GF Value™ is $518.44, compared to a current price of $299.91 — trading 42.2% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 19.96%, which is 51% above median its 10-year median of 13.23 and 110.3% above the Capital Markets industry median of 9.49. FactSet Research Systems' overall GF Score™ is 89/100 with 1 warning sign 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 FactSet Research Systems (FDS), the current Forward Rate of Return (Yacktman) % is 19.96% as of May. 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 FactSet Research Systems (FDS) Overvalued in 2026?
Based on GuruFocus' analysis, FactSet Research Systems stock appears to be undervalued.
The current stock price of $299.91 is trading 42.2% below its estimated GF Value™ of $518.44.
GuruFocus considers FactSet Research Systems to be Significantly Undervalued.
Key valuation signals for FDS:
Forward Rate of Return (Yacktman) %: 19.96% (51% above median its 10-year median of 13.23)
GF Value™: $518.44 vs. price of $299.91 (42.2% below fair value)
Industry Position: 110.3% above the Capital Markets median (#146 of 512)
No single metric tells the full story. See the FDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FactSet provides financial data and portfolio analytics to the global investment community. The company aggregates data from third-party data suppliers, news sources, exchanges, brokerages, and contributors into its workstations. In addition, it provides essential portfolio analytics that companies use to monitor portfolios and address reporting requirements. Buy-side clients (including wealth and corporate clients) account for over 80% of FactSet's annual subscription value. In 2015, the company acquired Portware, a provider of trade execution software. In 2017, it acquired BISAM, a risk management and performance measurement provider. In 2022, it completed its purchase of CUSIP Global Services.
89GF Score
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