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Kratos Defense & Security SolutionsLTS:0JS0 +7.40%67 Forward Rate of Return (Yacktman) % is 13.43% as of Jun. 2026, which is 1715% above its 10-year median of 0.74. GuruFocus rates LTS:0JS0 with a GF Score™ of 67/100 and a GF Value™ of $32.12 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 202 Aerospace & Defense companies, Kratos Defense & Security Solutions ranks better than 57.43% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Kratos Defense & Security Solutions's forward rate of return for was 13.43%.
The historical rank and industry rank for Kratos Defense & Security Solutions's Forward Rate of Return (Yacktman) % or its related term are showing as below:
LTS:0JS0'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -10.89 Med: 0.74 Max: 18.79
Current: 13.5
During the past 13 years, Kratos Defense & Security Solutions's highest Forward Rate of Return was 18.79. The lowest was -10.89. And the median was 0.74.
LTS:0JS0's Forward Rate of Return (Yacktman) % is ranked better than 57.43% of 202
companies
in the Aerospace & Defense industry
Industry Median: 9.265
vs LTS:0JS0: 13.50
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.
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.
Kratos Defense & Security Solutions Forward Rate of Return (Yacktman) % Related Terms
Kratos Defense & Security Solutions 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.
LTS:0JS0 vs HXL, SARO, AVAV: Forward Rate of Return (Yacktman) % Comparison
For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions'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.
Kratos Defense & Security Solutions Forward Rate of Return (Yacktman) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Kratos Defense & Security Solutions's Forward Rate of Return (Yacktman) % falls into.
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 13.43% mean?
Kratos Defense & Security Solutions (LTS:0JS0) has a Forward Rate of Return (Yacktman) % of 13.43% 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 Kratos Defense & Security Solutions and its competitors. This is 1715% above median its historical median of 0.74. According to the industry distribution chart, Kratos Defense & Security Solutions ranks #86 out of 202 companies in the Aerospace & Defense industry, placing it in the top 42.6%.
Is Kratos Defense & Security Solutions' Forward Rate of Return (Yacktman) % too high?
Kratos Defense & Security Solutions' current Forward Rate of Return (Yacktman) % of 13.43% is 1715% above median its 10-year median of 0.74. The Aerospace & Defense industry median Forward Rate of Return (Yacktman) % is 9.27. Kratos Defense & Security Solutions' value of 13.43% is 45% above this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #86 out of 202 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Forward Rate of Return (Yacktman) % compare to HXL and SARO?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #86 out of 202 companies for Forward Rate of Return (Yacktman) %. This puts Kratos Defense & Security Solutions in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.27. Kratos Defense & Security Solutions' value of 13.43% is 45% above this benchmark. While the company's 10-year median is 0.74 vs. the industry median of 9.27, Kratos Defense & Security Solutions 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 9.27, 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. Kratos Defense & Security Solutions's current Forward Rate of Return (Yacktman) % of 13.43% is 45% 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 Kratos Defense & Security Solutions and its competitors. For the Aerospace & Defense industry, the median Forward Rate of Return (Yacktman) % is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current Forward Rate of Return (Yacktman) % is 13.43%, which is 1715% above median its own 10-year median of 0.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kratos Defense & Security Solutions stock overvalued right now?
Based on GuruFocus' analysis, Kratos Defense & Security Solutions (LTS:0JS0) is currently considered Significantly Overvalued. The stock's GF Value™ is $32.12, compared to a current price of $55.87 — trading 73.9% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 13.43%, which is 1715% above median its 10-year median of 0.74 and 45% above the Aerospace & Defense industry median of 9.27. Kratos Defense & Security Solutions' overall GF Score™ is 67/100 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 Kratos Defense & Security Solutions (LTS:0JS0), the current Forward Rate of Return (Yacktman) % is 13.43% 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 Kratos Defense & Security Solutions (LTS:0JS0) Overvalued in 2026?
Based on GuruFocus' analysis, Kratos Defense & Security Solutions stock appears to be overvalued.
The current stock price of $55.87 is trading 73.9% above its estimated GF Value™ of $32.12.
GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.
Key valuation signals for LTS:0JS0:
Forward Rate of Return (Yacktman) %: 13.43% (1715% above median its 10-year median of 0.74)
GF Value™: $32.12 vs. price of $55.87 (73.9% above fair value)
Industry Position: 45% above the Aerospace & Defense median (#86 of 202)
No single metric tells the full story. See the LTS:0JS0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems. The company has two segments; The Kratos Government Solutions (KGS) segment is comprised of an aggregation of KGS operating segments, including its microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. The company derives a majority of its revenue from the Kratos Government Solutions segment.
67GF Score
Get the complete analysis for LTS:0JS0
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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