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IBW FinancialIBWC 35 Forward Rate of Return (Yacktman) % is -3.24% as of Dec. 2025. GuruFocus rates IBWC with a GF Score™ of 35/100 and a GF Value™ of $29.38 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,417 Banks companies, IBW Financial ranks worse than 92.87% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. IBW Financial's forward rate of return for was -3.24%.
The historical rank and industry rank for IBW Financial's Forward Rate of Return (Yacktman) % or its related term are showing as below:
IBWC'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -15.45 Med: -3.75 Max: 2.86
Current: -4.93
During the past 12 years, IBW Financial's highest Forward Rate of Return was 2.86. The lowest was -15.45. And the median was -3.75.
IBWC's Forward Rate of Return (Yacktman) % is ranked worse than 92.87% of 1417
companies
in the Banks industry
Industry Median: 15.64
vs IBWC: -4.93
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.
IBW Financial (OTCPK:IBWC) 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.
IBW Financial Forward Rate of Return (Yacktman) % Related Terms
IBW Financial Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for IBW Financial'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.
IBW Financial Forward Rate of Return (Yacktman) % Chart
IBWC vs PGNN, FBVI, STBI: Forward Rate of Return (Yacktman) % Comparison
For the Banks - Regional subindustry, IBW Financial'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.
IBW Financial Forward Rate of Return (Yacktman) % vs Banks Industry
For the Banks industry and Financial Services sector, IBW Financial's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where IBW Financial's Forward Rate of Return (Yacktman) % falls into.
IBW Financial 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).
IBW Financial's Forward Rate of Return of Dec. 2025 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year Book Value Growth Rate
=
1.03033333
/
37.9292
+
-0.0596
=
-3.24 %
* 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 -3.24% mean?
IBW Financial (IBWC) has a Forward Rate of Return (Yacktman) % of -3.24% 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 IBW Financial and its competitors. According to the industry distribution chart, IBW Financial ranks #1316 out of 1417 companies in the Banks industry, placing it in the top 92.9%.
Is IBW Financial's Forward Rate of Return (Yacktman) % too high?
IBW Financial's current Forward Rate of Return (Yacktman) % is -3.24%. Based on the distribution chart, IBW Financial ranks #1316 out of 1417 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, IBW Financial has a GF Score™ of 35/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IBW Financial's Forward Rate of Return (Yacktman) % compare to PGNN and FBVI?
According to the Banks industry distribution chart, IBW Financial ranks #1316 out of 1417 companies for Forward Rate of Return (Yacktman) %. This places IBW Financial in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 15.64. 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 15.64, based on 1,417 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. 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 IBW Financial and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IBW Financial's current Forward Rate of Return (Yacktman) % is -3.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IBW Financial stock overvalued right now?
Based on GuruFocus' analysis, IBW Financial (IBWC) is currently considered Significantly Overvalued. The stock's GF Value™ is $29.38, compared to a current price of $100.00 — trading 240.4% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is -3.24%. IBW Financial's overall GF Score™ is 35/100 with 7 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 IBW Financial (IBWC), the current Forward Rate of Return (Yacktman) % is -3.24% 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 IBW Financial (IBWC) Overvalued in 2026?
Based on GuruFocus' analysis, IBW Financial stock appears to be overvalued.
The current stock price of $100.00 is trading 240.4% above its estimated GF Value™ of $29.38.
GuruFocus considers IBW Financial to be Significantly Overvalued.
Key valuation signals for IBWC:
Forward Rate of Return (Yacktman) %: -3.24%
GF Value™: $29.38 vs. price of $100.00 (240.4% above fair value)
No single metric tells the full story. See the IBWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IBW Financial Corp is a bank holding company. Through its banking subsidiary, it is engaged in offering a broad range of banking products, including a full line of business and personal savings and certificates of deposit, and other banking services. It also funds a variety of loan types, including commercial term loans and residential real estate loans, lines of credit, consumer loans, and letters of credit. The company's customers are mainly individuals and small businesses. Geographically, its primary market areas are in the District of Columbia and surrounding areas.
35GF Score
Get the complete analysis for IBWC
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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