Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Texas Instruments's forward rate of return for was -3.54%.
The historical rank and industry rank for Texas Instruments's Forward Rate of Return (Yacktman) % or its related term are showing as below:
FRA:TII'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -3.59 Med: 14.59 Max: 21.89
Current: -3.33
During the past 13 years, Texas Instruments's highest Forward Rate of Return was 21.89. The lowest was -3.59. And the median was 14.59.
FRA:TII's Forward Rate of Return (Yacktman) % is ranked worse than 56.46% of 611
companies
in the Semiconductors industry
Industry Median: -0.29
vs FRA:TII: -3.33
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.
Texas Instruments (FRA:TII) 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.
Texas Instruments Forward Rate of Return (Yacktman) % Related Terms
Texas Instruments Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Texas Instruments'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.
Texas Instruments Forward Rate of Return (Yacktman) % Chart
FRA:TII vs MRVL, QCOM, ADI: Forward Rate of Return (Yacktman) % Comparison
For the Semiconductors subindustry, Texas Instruments'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.
Texas Instruments Forward Rate of Return (Yacktman) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Texas Instruments's Forward Rate of Return (Yacktman) % falls into.
Texas Instruments 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 -3.54% mean?
Texas Instruments (FRA:TII) has a Forward Rate of Return (Yacktman) % of -3.54% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Texas Instruments and its competitors. According to the industry distribution chart, Texas Instruments ranks #345 out of 611 companies in the Semiconductors industry, placing it in the top 56.5%.
Is Texas Instruments' Forward Rate of Return (Yacktman) % too high?
Texas Instruments' current Forward Rate of Return (Yacktman) % is -3.54%. Based on the distribution chart, Texas Instruments ranks #345 out of 611 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Texas Instruments has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Instruments' Forward Rate of Return (Yacktman) % compare to MRVL and QCOM?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #345 out of 611 companies for Forward Rate of Return (Yacktman) %. This places Texas Instruments in the lower half of its industry. 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 Semiconductors company?
A good Forward Rate of Return (Yacktman) % depends on the Semiconductors industry context. 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 Texas Instruments and its competitors. Texas Instruments's current Forward Rate of Return (Yacktman) % is -3.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Instruments stock overvalued right now?
Based on GuruFocus' analysis, Texas Instruments (FRA:TII) is currently considered Modestly Overvalued. The stock's GF Value™ is €202.83, compared to a current price of €224.65 — trading 10.8% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is -3.54%. Texas Instruments' overall GF Score™ is 87/100 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 Texas Instruments (FRA:TII), the current Forward Rate of Return (Yacktman) % is -3.54% as of Jun. 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 Texas Instruments (FRA:TII) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Instruments stock appears to be overvalued.
The current stock price of €224.65 is trading 10.8% above its estimated GF Value™ of €202.83.
GuruFocus considers Texas Instruments to be Modestly Overvalued.
Key valuation signals for FRA:TII:
Forward Rate of Return (Yacktman) %: -3.54%
GF Value™: €202.83 vs. price of €224.65 (10.8% above fair value)
No single metric tells the full story. See the FRA:TII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in processors and microcontrollers used in a wide variety of electronics applications.
87GF Score
Get the complete analysis for FRA:TII
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:TII has been successfully added to your 
