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General DynamicsMEX:GD 87 Forward Rate of Return (Yacktman) % is 10.39% as of Jun. 2026, which is 3% below its 10-year median of 10.71. GuruFocus rates MEX:GD with a GF Score™ of 87/100 and a GF Value™ of MXN5,967.28 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 203 Aerospace & Defense companies, General Dynamics ranks better than 50.74% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. General Dynamics's forward rate of return for was 10.39%.
The historical rank and industry rank for General Dynamics's Forward Rate of Return (Yacktman) % or its related term are showing as below:
MEX:GD'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 4.59 Med: 10.71 Max: 23.94
Current: 10.09
During the past 13 years, General Dynamics's highest Forward Rate of Return was 23.94. The lowest was 4.59. And the median was 10.71.
MEX:GD's Forward Rate of Return (Yacktman) % is ranked better than 50.74% of 203
companies
in the Aerospace & Defense industry
Industry Median: 9.44
vs MEX:GD: 10.09
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.
General Dynamics (MEX:GD) 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.
General Dynamics Forward Rate of Return (Yacktman) % Related Terms
General Dynamics Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for General Dynamics'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.
General Dynamics Forward Rate of Return (Yacktman) % Chart
MEX:GD vs HWM, NOC, LMT: Forward Rate of Return (Yacktman) % Comparison
For the Aerospace & Defense subindustry, General Dynamics'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.
General Dynamics Forward Rate of Return (Yacktman) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, General Dynamics's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where General Dynamics's Forward Rate of Return (Yacktman) % falls into.
General Dynamics 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 10.39% mean?
General Dynamics (MEX:GD) has a Forward Rate of Return (Yacktman) % of 10.39% 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 General Dynamics and its competitors. This is near median its historical median of 10.71. Over the past decade, General Dynamics' Forward Rate of Return (Yacktman) % has ranged from 4.59 to 23.94. According to the industry distribution chart, General Dynamics ranks #100 out of 203 companies in the Aerospace & Defense industry, placing it in the top 49.3%.
Is General Dynamics' Forward Rate of Return (Yacktman) % too high?
General Dynamics' current Forward Rate of Return (Yacktman) % of 10.39% is near median its 10-year median of 10.71. Over the past 10 years, this metric has ranged from a low of 4.59 to a high of 23.94. The Aerospace & Defense industry median Forward Rate of Return (Yacktman) % is 9.44. General Dynamics' value of 10.39% is 10.1% above this industry median. Based on the distribution chart, General Dynamics ranks #100 out of 203 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, General Dynamics has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does General Dynamics' Forward Rate of Return (Yacktman) % compare to HWM and NOC?
According to the Aerospace & Defense industry distribution chart, General Dynamics ranks #100 out of 203 companies for Forward Rate of Return (Yacktman) %. This puts General Dynamics in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.44. General Dynamics' value of 10.39% is 10.1% above this benchmark. Historically, General Dynamics' own Forward Rate of Return (Yacktman) % has ranged from 4.59 to 23.94 over the past decade. While the company's 10-year median is 10.71 vs. the industry median of 9.44, General Dynamics 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 9.44, based on 203 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. General Dynamics's current Forward Rate of Return (Yacktman) % of 10.39% is 10.1% 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 General Dynamics and its competitors. For the Aerospace & Defense industry, the median Forward Rate of Return (Yacktman) % is 9.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Dynamics's current Forward Rate of Return (Yacktman) % is 10.39%, which is near median its own 10-year median of 10.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Dynamics stock overvalued right now?
Based on GuruFocus' analysis, General Dynamics (MEX:GD) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN5,967.28, compared to a current price of MXN6,878.00 — trading 15.3% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 10.39%, which is near median its 10-year median of 10.71 and 10.1% above the Aerospace & Defense industry median of 9.44. General Dynamics' overall GF Score™ is 87/100 with 8 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 General Dynamics (MEX:GD), the current Forward Rate of Return (Yacktman) % is 10.39% 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 General Dynamics (MEX:GD) Overvalued in 2026?
Based on GuruFocus' analysis, General Dynamics stock appears to be overvalued.
The current stock price of MXN6,878.00 is trading 15.3% above its estimated GF Value™ of MXN5,967.28.
GuruFocus considers General Dynamics to be Modestly Overvalued.
Key valuation signals for MEX:GD:
Forward Rate of Return (Yacktman) %: 10.39% (near median its 10-year median of 10.71)
GF Value™: MXN5,967.28 vs. price of MXN6,878.00 (15.3% above fair value)
Industry Position: 10.1% above the Aerospace & Defense median (#100 of 203)
No single metric tells the full story. See the MEX:GD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Dynamics is a defense contractor and business jet manufacturer. The firm's segments are aerospace, marine, combat systems, and technologies. General Dynamics' aerospace segment manufactures Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment builds and services nuclear-powered submarines, destroyers, and Navy support ships. The technologies segment contains two main units: an IT business that primarily serves the government market and a mission systems business focusing on electronics that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.
87GF Score
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