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National Bank of CanadaNTIOF -0.46%79 Forward Rate of Return (Yacktman) % is 20.39% as of Jul. 2026, which is 33% below its 10-year median of 30.52. GuruFocus rates NTIOF with a GF Score™ of 79/100 and a GF Value™ of $112.78 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,418 Banks companies, National Bank of Canada ranks better than 68.05% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. National Bank of Canada's forward rate of return for was 20.39%.
The historical rank and industry rank for National Bank of Canada's Forward Rate of Return (Yacktman) % or its related term are showing as below:
NTIOF'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 18.23 Med: 30.52 Max: 48.91
Current: 20.97
During the past 13 years, National Bank of Canada's highest Forward Rate of Return was 48.91. The lowest was 18.23. And the median was 30.52.
NTIOF's Forward Rate of Return (Yacktman) % is ranked better than 68.05% of 1418
companies
in the Banks industry
Industry Median: 15.565
vs NTIOF: 20.97
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.
National Bank of Canada (OTCPK:NTIOF) 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.
National Bank of Canada Forward Rate of Return (Yacktman) % Related Terms
National Bank of Canada Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for National Bank of Canada'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.
National Bank of Canada Forward Rate of Return (Yacktman) % Chart
NTIOF vs JPM, BAC, WFC: Forward Rate of Return (Yacktman) % Comparison
For the Banks - Diversified subindustry, National Bank of Canada'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.
National Bank of Canada Forward Rate of Return (Yacktman) % vs Banks Industry
For the Banks industry and Financial Services sector, National Bank of Canada's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where National Bank of Canada's Forward Rate of Return (Yacktman) % falls into.
National Bank of Canada 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 20.39% mean?
National Bank of Canada (NTIOF) has a Forward Rate of Return (Yacktman) % of 20.39% as of Jul. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on National Bank of Canada and its competitors. This is 33% below median its historical median of 30.52. Over the past decade, National Bank of Canada's Forward Rate of Return (Yacktman) % has ranged from 18.23 to 48.91. According to the industry distribution chart, National Bank of Canada ranks #453 out of 1418 companies in the Banks industry, placing it in the top 31.9%.
Is National Bank of Canada's Forward Rate of Return (Yacktman) % too high?
National Bank of Canada's current Forward Rate of Return (Yacktman) % of 20.39% is 33% below median its 10-year median of 30.52. Over the past 10 years, this metric has ranged from a low of 18.23 to a high of 48.91. The Banks industry median Forward Rate of Return (Yacktman) % is 15.57. National Bank of Canada's value of 20.39% is 31% above this industry median. Based on the distribution chart, National Bank of Canada ranks #453 out of 1418 companies in the Banks industry, which is above the industry midpoint. Overall, National Bank of Canada has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does National Bank of Canada's Forward Rate of Return (Yacktman) % compare to JPM and BAC?
According to the Banks industry distribution chart, National Bank of Canada ranks #453 out of 1418 companies for Forward Rate of Return (Yacktman) %. This puts National Bank of Canada in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 15.57. National Bank of Canada's value of 20.39% is 31% above this benchmark. Historically, National Bank of Canada's own Forward Rate of Return (Yacktman) % has ranged from 18.23 to 48.91 over the past decade. While the company's 10-year median is 30.52 vs. the industry median of 15.57, National Bank of Canada 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 Banks company?
The median Forward Rate of Return (Yacktman) % among Banks companies is 15.57, based on 1,418 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. National Bank of Canada's current Forward Rate of Return (Yacktman) % of 20.39% is 31% 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 National Bank of Canada and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Bank of Canada's current Forward Rate of Return (Yacktman) % is 20.39%, which is 33% below median its own 10-year median of 30.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Bank of Canada stock overvalued right now?
Based on GuruFocus' analysis, National Bank of Canada (NTIOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $112.78, compared to a current price of $152.63 — trading 35.3% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 20.39%, which is 33% below median its 10-year median of 30.52 and 31% above the Banks industry median of 15.57. National Bank of Canada's overall GF Score™ is 79/100 with 3 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 National Bank of Canada (NTIOF), the current Forward Rate of Return (Yacktman) % is 20.39% as of Jul. 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 National Bank of Canada (NTIOF) Overvalued in 2026?
Based on GuruFocus' analysis, National Bank of Canada stock appears to be overvalued.
The current stock price of $152.63 is trading 35.3% above its estimated GF Value™ of $112.78.
GuruFocus considers National Bank of Canada to be Significantly Overvalued.
Key valuation signals for NTIOF:
Forward Rate of Return (Yacktman) %: 20.39% (33% below median its 10-year median of 30.52)
GF Value™: $112.78 vs. price of $152.63 (35.3% above fair value)
Industry Position: 31% above the Banks median (#453 of 1418)
No single metric tells the full story. See the NTIOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Bank of Canada is the sixth-largest bank in Canada. It is a diversified financial services company, offering personal and commercial banking, wealth management and capital markets services. The bank derives around 45% of its 2025 revenue from the province of Quebec, with additional operations in the rest of Canada and the United States. National Bank of Canada also owns ABA Bank, one of the largest commercial banks in Cambodia.
79GF Score
Get the complete analysis for NTIOF
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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