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.
Innovative Solutions and SupportIA +2.48%94 Forward Rate of Return (Yacktman) % is 22.04% as of Jun. 2026, which is 1% below its 10-year median of 22.24. GuruFocus rates IA with a GF Score™ of 94/100 and a GF Value™ of $17.52 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 202 Aerospace & Defense companies, Innovative Solutions and Support ranks better than 89.6% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Innovative Solutions and Support's forward rate of return for was 22.04%.
The historical rank and industry rank for Innovative Solutions and Support's Forward Rate of Return (Yacktman) % or its related term are showing as below:
IA'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 21.17 Med: 22.24 Max: 24.13
Current: 21.71
During the past 13 years, Innovative Solutions and Support's highest Forward Rate of Return was 24.13. The lowest was 21.17. And the median was 22.24.
IA's Forward Rate of Return (Yacktman) % is ranked better than 89.6% of 202
companies
in the Aerospace & Defense industry
Industry Median: 10.2
vs IA: 21.71
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.
Innovative Solutions and Support (NAS:IA) 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.
Innovative Solutions and Support Forward Rate of Return (Yacktman) % Related Terms
Innovative Solutions and Support Forward Rate of Return (Yacktman) % Historical Data
* 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.
Innovative Solutions and Support Forward Rate of Return (Yacktman) % Chart
IA vs MRLN, SPCE, EH: Forward Rate of Return (Yacktman) % Comparison
For the Aerospace & Defense subindustry, Innovative Solutions and Support'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.
Innovative Solutions and Support Forward Rate of Return (Yacktman) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Innovative Solutions and Support's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Innovative Solutions and Support's Forward Rate of Return (Yacktman) % falls into.
Innovative Solutions and Support 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 22.04% mean?
Innovative Solutions and Support (IA) has a Forward Rate of Return (Yacktman) % of 22.04% 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 Innovative Solutions and Support and its competitors. This is near median its historical median of 22.24. Over the past decade, Innovative Solutions and Support's Forward Rate of Return (Yacktman) % has ranged from 21.17 to 24.13. According to the industry distribution chart, Innovative Solutions and Support ranks #21 out of 202 companies in the Aerospace & Defense industry, placing it in the top 10.4%.
Is Innovative Solutions and Support's Forward Rate of Return (Yacktman) % too high?
Innovative Solutions and Support's current Forward Rate of Return (Yacktman) % of 22.04% is near median its 10-year median of 22.24. Over the past 10 years, this metric has ranged from a low of 21.17 to a high of 24.13. The Aerospace & Defense industry median Forward Rate of Return (Yacktman) % is 10.20. Innovative Solutions and Support's value of 22.04% is 116.1% above this industry median. Based on the distribution chart, Innovative Solutions and Support ranks #21 out of 202 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Innovative Solutions and Support has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Innovative Solutions and Support's Forward Rate of Return (Yacktman) % compare to MRLN and SPCE?
According to the Aerospace & Defense industry distribution chart, Innovative Solutions and Support ranks #21 out of 202 companies for Forward Rate of Return (Yacktman) %. This places Innovative Solutions and Support in the top 10% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 10.20. Innovative Solutions and Support's value of 22.04% is 116.1% above this benchmark. Historically, Innovative Solutions and Support's own Forward Rate of Return (Yacktman) % has ranged from 21.17 to 24.13 over the past decade. While the company's 10-year median is 22.24 vs. the industry median of 10.20, Innovative Solutions and Support 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 an Aerospace & Defense company?
The median Forward Rate of Return (Yacktman) % among Aerospace & Defense companies is 10.20, 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. Innovative Solutions and Support's current Forward Rate of Return (Yacktman) % of 22.04% is 116.1% 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 Innovative Solutions and Support and its competitors. For the Aerospace & Defense industry, the median Forward Rate of Return (Yacktman) % is 10.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innovative Solutions and Support's current Forward Rate of Return (Yacktman) % is 22.04%, which is near median its own 10-year median of 22.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Innovative Solutions and Support stock overvalued right now?
Based on GuruFocus' analysis, Innovative Solutions and Support (IA) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.52, compared to a current price of $21.50 — trading 22.7% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 22.04%, which is near median its 10-year median of 22.24 and 116.1% above the Aerospace & Defense industry median of 10.20. Innovative Solutions and Support's overall GF Score™ is 94/100 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 Innovative Solutions and Support (IA), the current Forward Rate of Return (Yacktman) % is 22.04% 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 Innovative Solutions and Support (IA) Overvalued in 2026?
Based on GuruFocus' analysis, Innovative Solutions and Support stock appears to be overvalued.
The current stock price of $21.50 is trading 22.7% above its estimated GF Value™ of $17.52.
GuruFocus considers Innovative Solutions and Support to be Modestly Overvalued.
Key valuation signals for IA:
Forward Rate of Return (Yacktman) %: 22.04% (near median its 10-year median of 22.24)
GF Value™: $17.52 vs. price of $21.50 (22.7% above fair value)
Industry Position: 116.1% above the Aerospace & Defense median (#21 of 202)
No single metric tells the full story. See the IA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Positioning System receivers that enable reduced carbon footprint navigation, and an Autothrottle, which allows a pilot to automatically control the power setting of the engine and is designed to reduce pilot workload and enhance safety. It sells its products to both the OEM and the retrofit markets.
94GF Score
Get the complete analysis for IA
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
IA has been successfully added to your 
