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NXP Semiconductors NVNXPI -2.14%93 Forward Rate of Return (Yacktman) % is 8.16% as of Jun. 2026, which is 59% below its 10-year median of 19.98. GuruFocus rates NXPI with a GF Score™ of 93/100 and a GF Value™ of $244.58 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 606 Semiconductors companies, NXP Semiconductors NV ranks better than 67.99% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. NXP Semiconductors NV's forward rate of return for was 8.16%.
The historical rank and industry rank for NXP Semiconductors NV's Forward Rate of Return (Yacktman) % or its related term are showing as below:
NXPI'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.67 Med: 19.98 Max: 28.23
Current: 8.96
During the past 13 years, NXP Semiconductors NV's highest Forward Rate of Return was 28.23. The lowest was 3.67. And the median was 19.98.
NXPI's Forward Rate of Return (Yacktman) % is ranked better than 67.99% of 606
companies
in the Semiconductors industry
Industry Median: 0.655
vs NXPI: 8.96
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.
NXP Semiconductors NV Forward Rate of Return (Yacktman) % Related Terms
NXP Semiconductors NV Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for NXP Semiconductors NV'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.
NXP Semiconductors NV Forward Rate of Return (Yacktman) % Chart
NXPI vs MPWR, ALAB, CBRS: Forward Rate of Return (Yacktman) % Comparison
For the Semiconductors subindustry, NXP Semiconductors NV'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.
NXP Semiconductors NV Forward Rate of Return (Yacktman) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NXP Semiconductors NV's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where NXP Semiconductors NV's Forward Rate of Return (Yacktman) % falls into.
NXP Semiconductors NV 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 8.16% mean?
NXP Semiconductors NV (NXPI) has a Forward Rate of Return (Yacktman) % of 8.16% 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 NXP Semiconductors NV and its competitors. This is 59% below median its historical median of 19.98. Over the past decade, NXP Semiconductors NV's Forward Rate of Return (Yacktman) % has ranged from 3.67 to 28.23. According to the industry distribution chart, NXP Semiconductors NV ranks #194 out of 606 companies in the Semiconductors industry, placing it in the top 32%.
Is NXP Semiconductors NV's Forward Rate of Return (Yacktman) % too high?
NXP Semiconductors NV's current Forward Rate of Return (Yacktman) % of 8.16% is 59% below median its 10-year median of 19.98. Over the past 10 years, this metric has ranged from a low of 3.67 to a high of 28.23. The Semiconductors industry median Forward Rate of Return (Yacktman) % is 0.66. NXP Semiconductors NV's value of 8.16% is 1145.8% above this industry median. Based on the distribution chart, NXP Semiconductors NV ranks #194 out of 606 companies in the Semiconductors industry, which is above the industry midpoint. Overall, NXP Semiconductors NV has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NXP Semiconductors NV's Forward Rate of Return (Yacktman) % compare to MPWR and ALAB?
According to the Semiconductors industry distribution chart, NXP Semiconductors NV ranks #194 out of 606 companies for Forward Rate of Return (Yacktman) %. This puts NXP Semiconductors NV in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 0.66. NXP Semiconductors NV's value of 8.16% is 1145.8% above this benchmark. Historically, NXP Semiconductors NV's own Forward Rate of Return (Yacktman) % has ranged from 3.67 to 28.23 over the past decade. While the company's 10-year median is 19.98 vs. the industry median of 0.66, NXP Semiconductors NV 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 Semiconductors company?
The median Forward Rate of Return (Yacktman) % among Semiconductors companies is 0.66, based on 606 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. NXP Semiconductors NV's current Forward Rate of Return (Yacktman) % of 8.16% is 1145.8% 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 NXP Semiconductors NV and its competitors. For the Semiconductors industry, the median Forward Rate of Return (Yacktman) % is 0.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NXP Semiconductors NV's current Forward Rate of Return (Yacktman) % is 8.16%, which is 59% below median its own 10-year median of 19.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NXP Semiconductors NV stock overvalued right now?
Based on GuruFocus' analysis, NXP Semiconductors NV (NXPI) is currently considered Modestly Undervalued. The stock's GF Value™ is $244.58, compared to a current price of $220.73 — trading 9.8% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 8.16%, which is 59% below median its 10-year median of 19.98 and 1145.8% above the Semiconductors industry median of 0.66. NXP Semiconductors NV's overall GF Score™ is 93/100 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 NXP Semiconductors NV (NXPI), the current Forward Rate of Return (Yacktman) % is 8.16% 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 NXP Semiconductors NV (NXPI) Overvalued in 2026?
Based on GuruFocus' analysis, NXP Semiconductors NV stock appears to be undervalued.
The current stock price of $220.73 is trading 9.8% below its estimated GF Value™ of $244.58.
GuruFocus considers NXP Semiconductors NV to be Modestly Undervalued.
Key valuation signals for NXPI:
Forward Rate of Return (Yacktman) %: 8.16% (59% below median its 10-year median of 19.98)
GF Value™: $244.58 vs. price of $220.73 (9.8% below fair value)
Industry Position: 1145.8% above the Semiconductors median (#194 of 606)
No single metric tells the full story. See the NXPI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.
93GF Score
Get the complete analysis for NXPI
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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