Quest LaboratoriesNSE:QUESTLAB +2.47%44 Forward Rate of Return (Yacktman) % is 17.45% as of Mar. 2026, which is 0% below its 10-year median of 17.50. GuruFocus rates NSE:QUESTLAB with a GF Score™ of 44/100. The stock has 7 warning signs investors should review. Among 635 Drug Manufacturers companies, Quest Laboratories ranks better than 75.91% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Quest Laboratories's forward rate of return for was 17.45%.
The historical rank and industry rank for Quest Laboratories's Forward Rate of Return (Yacktman) % or its related term are showing as below:
NSE:QUESTLAB'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 17.2 Med: 17.5 Max: 18.24
Current: 17.2
During the past 6 years, Quest Laboratories's highest Forward Rate of Return was 18.24. The lowest was 17.20. And the median was 17.50.
NSE:QUESTLAB's Forward Rate of Return (Yacktman) % is ranked better than 75.91% of 635
companies
in the Drug Manufacturers industry
Industry Median: 6.44
vs NSE:QUESTLAB: 17.20
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.
Quest Laboratories (NSE:QUESTLAB) 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.
Quest Laboratories Forward Rate of Return (Yacktman) % Related Terms
Quest Laboratories Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Quest Laboratories'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.
Quest Laboratories Forward Rate of Return (Yacktman) % Chart
NSE:QUESTLAB vs LLY, JNJ, ABBV: Forward Rate of Return (Yacktman) % Comparison
For the Drug Manufacturers - General subindustry, Quest Laboratories'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.
Quest Laboratories Forward Rate of Return (Yacktman) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Quest Laboratories's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Quest Laboratories's Forward Rate of Return (Yacktman) % falls into.
Quest Laboratories 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 17.45% mean?
Quest Laboratories (NSE:QUESTLAB) has a Forward Rate of Return (Yacktman) % of 17.45% as of Mar. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Quest Laboratories and its competitors. This is near median its historical median of 17.50. Over the past decade, Quest Laboratories' Forward Rate of Return (Yacktman) % has ranged from 17.20 to 18.24. According to the industry distribution chart, Quest Laboratories ranks #153 out of 635 companies in the Drug Manufacturers industry, placing it in the top 24.1%.
Is Quest Laboratories' Forward Rate of Return (Yacktman) % too high?
Quest Laboratories' current Forward Rate of Return (Yacktman) % of 17.45% is near median its 10-year median of 17.50. Over the past 10 years, this metric has ranged from a low of 17.20 to a high of 18.24. The Drug Manufacturers industry median Forward Rate of Return (Yacktman) % is 6.44. Quest Laboratories' value of 17.45% is 171% above this industry median. Based on the distribution chart, Quest Laboratories ranks #153 out of 635 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Quest Laboratories has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Quest Laboratories' Forward Rate of Return (Yacktman) % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Quest Laboratories ranks #153 out of 635 companies for Forward Rate of Return (Yacktman) %. This places Quest Laboratories in the top 24% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 6.44. Quest Laboratories' value of 17.45% is 171% above this benchmark. Historically, Quest Laboratories' own Forward Rate of Return (Yacktman) % has ranged from 17.20 to 18.24 over the past decade. While the company's 10-year median is 17.50 vs. the industry median of 6.44, Quest Laboratories 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 a Drug Manufacturers company?
The median Forward Rate of Return (Yacktman) % among Drug Manufacturers companies is 6.44, based on 635 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. Quest Laboratories's current Forward Rate of Return (Yacktman) % of 17.45% is 171% 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 Quest Laboratories and its competitors. For the Drug Manufacturers industry, the median Forward Rate of Return (Yacktman) % is 6.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quest Laboratories's current Forward Rate of Return (Yacktman) % is 17.45%, which is near median its own 10-year median of 17.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quest Laboratories stock overvalued right now?
Quest Laboratories (NSE:QUESTLAB) has a current Forward Rate of Return (Yacktman) % of 17.45%. The current Forward Rate of Return (Yacktman) % is 17.45%, which is near median its 10-year median of 17.50 and 171% above the Drug Manufacturers industry median of 6.44. Quest Laboratories' overall GF Score™ is 44/100 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 Quest Laboratories (NSE:QUESTLAB), the current Forward Rate of Return (Yacktman) % is 17.45% as of Mar. 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.
Quest Laboratories Ltd is engaged in the business of manufacturing pharmaceutical formulations across a broad spectrum, including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, antidepressants, and more. It produces various products, comprising ethical drugs, generic drugs, and over-the-counter drugs, and is also available in various forms such as tablets, liquid orals, oral dry powders, oral powders (ORS), ointments, and external liquids, among others. The company operates in a single segment of Drugs and Chemicals.
44GF Score
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