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Independent BankINDB +1.16%69 Forward Rate of Return (Yacktman) % is 12.78% as of Jun. 2026, which is 23% below its 10-year median of 16.56. GuruFocus rates INDB with a GF Score™ of 69/100 and a GF Value™ of $81.60 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,420 Banks companies, Independent Bank ranks worse than 61.69% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Independent Bank's forward rate of return for was 12.78%.
The historical rank and industry rank for Independent Bank's Forward Rate of Return (Yacktman) % or its related term are showing as below:
INDB'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 12.24 Med: 16.56 Max: 24.5
Current: 12.77
During the past 13 years, Independent Bank's highest Forward Rate of Return was 24.50. The lowest was 12.24. And the median was 16.56.
INDB's Forward Rate of Return (Yacktman) % is ranked worse than 61.69% of 1420
companies
in the Banks industry
Industry Median: 15.36
vs INDB: 12.77
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.
Independent Bank (NAS:INDB) 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.
Independent Bank Forward Rate of Return (Yacktman) % Related Terms
Independent Bank Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Independent Bank'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.
Independent Bank Forward Rate of Return (Yacktman) % Chart
INDB vs WSBC, CVBF, WSFS: Forward Rate of Return (Yacktman) % Comparison
For the Banks - Regional subindustry, Independent Bank'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.
Independent Bank Forward Rate of Return (Yacktman) % vs Banks Industry
For the Banks industry and Financial Services sector, Independent Bank's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Independent Bank's Forward Rate of Return (Yacktman) % falls into.
Independent Bank 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 12.78% mean?
Independent Bank (INDB) has a Forward Rate of Return (Yacktman) % of 12.78% 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 Independent Bank and its competitors. This is 23% below median its historical median of 16.56. Over the past decade, Independent Bank's Forward Rate of Return (Yacktman) % has ranged from 12.24 to 24.50. According to the industry distribution chart, Independent Bank ranks #876 out of 1420 companies in the Banks industry, placing it in the top 61.7%.
Is Independent Bank's Forward Rate of Return (Yacktman) % too high?
Independent Bank's current Forward Rate of Return (Yacktman) % of 12.78% is 23% below median its 10-year median of 16.56. Over the past 10 years, this metric has ranged from a low of 12.24 to a high of 24.50. The Banks industry median Forward Rate of Return (Yacktman) % is 15.36. Independent Bank's value of 12.78% is 16.8% below this industry median. Based on the distribution chart, Independent Bank ranks #876 out of 1420 companies in the Banks industry, which is below the industry midpoint. Overall, Independent Bank has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Independent Bank's Forward Rate of Return (Yacktman) % compare to WSBC and CVBF?
According to the Banks industry distribution chart, Independent Bank ranks #876 out of 1420 companies for Forward Rate of Return (Yacktman) %. This places Independent Bank in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 15.36. Independent Bank's value of 12.78% is 16.8% below this benchmark. Historically, Independent Bank's own Forward Rate of Return (Yacktman) % has ranged from 12.24 to 24.50 over the past decade. While the company's 10-year median is 16.56 vs. the industry median of 15.36, Independent Bank has consistently been below 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 15.36, based on 1,420 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. Independent Bank's current Forward Rate of Return (Yacktman) % of 12.78% is 16.8% below 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 Independent Bank and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Independent Bank's current Forward Rate of Return (Yacktman) % is 12.78%, which is 23% below median its own 10-year median of 16.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Independent Bank stock overvalued right now?
Based on GuruFocus' analysis, Independent Bank (INDB) is currently considered Fairly Valued. The stock's GF Value™ is $81.60, compared to a current price of $83.90 — trading 2.8% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 12.78%, which is 23% below median its 10-year median of 16.56 and 16.8% below the Banks industry median of 15.36. Independent Bank's overall GF Score™ is 69/100 with 6 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 Independent Bank (INDB), the current Forward Rate of Return (Yacktman) % is 12.78% 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 Independent Bank (INDB) Overvalued in 2026?
Based on GuruFocus' analysis, Independent Bank stock appears to be overvalued.
The current stock price of $83.90 is trading 2.8% above its estimated GF Value™ of $81.60.
GuruFocus considers Independent Bank to be Fairly Valued.
Key valuation signals for INDB:
Forward Rate of Return (Yacktman) %: 12.78% (23% below median its 10-year median of 16.56)
GF Value™: $81.60 vs. price of $83.90 (2.8% above fair value)
Industry Position: 16.8% below the Banks median (#876 of 1420)
No single metric tells the full story. See the INDB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Independent Bank Corp is a bank holding company and the sole shareholder of its bank, the Rockland Trust Company. Rockland is a community-oriented commercial bank. The bank provides a variety of banking, investment and financial services, operating with various retail branches, as well as a network of commercial and residential lending centers and investment management offices majorly in Eastern Massachusetts, Worcester County, and Rhode Island. The bank's loan portfolio constitutes the bulk of the bank's total assets. Its borrowers consist mostly of small to medium-size businesses and consumers, majority of which are made to its market area in eastern Massachusetts and Rhode Island. The bank's loan portfolio is predominantly in commercial loans.
69GF Score
Get the complete analysis for INDB
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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