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Pro MedicusPMDIY -5.96%73 Forward Rate of Return (Yacktman) % is 20.34% as of Jun. 2026, which is 0% above its 10-year median of 20.26. GuruFocus rates PMDIY with a GF Score™ of 73/100 and a GF Value™ of $35.74 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 340 Healthcare Providers & Services companies, Pro Medicus ranks better than 71.47% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Pro Medicus's forward rate of return for was 20.34%.
The historical rank and industry rank for Pro Medicus's Forward Rate of Return (Yacktman) % or its related term are showing as below:
PMDIY'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 20.08 Med: 20.26 Max: 20.51
Current: 20.39
During the past 13 years, Pro Medicus's highest Forward Rate of Return was 20.51. The lowest was 20.08. And the median was 20.26.
PMDIY's Forward Rate of Return (Yacktman) % is ranked better than 71.47% of 340
companies
in the Healthcare Providers & Services industry
Industry Median: 12.2
vs PMDIY: 20.39
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.
Pro Medicus (OTCPK:PMDIY) 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.
Pro Medicus Forward Rate of Return (Yacktman) % Related Terms
Pro Medicus Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Pro Medicus'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.
Pro Medicus Forward Rate of Return (Yacktman) % Chart
PMDIY vs VEEV, BTSG, TEM: Forward Rate of Return (Yacktman) % Comparison
For the Health Information Services subindustry, Pro Medicus'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.
Pro Medicus Forward Rate of Return (Yacktman) % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pro Medicus's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Pro Medicus's Forward Rate of Return (Yacktman) % falls into.
Pro Medicus 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).
Pro Medicus's Forward Rate of Return of Jun. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
0.09566667
/
24.45
+
0.2
=
20.39 %
* 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 20.34% mean?
Pro Medicus (PMDIY) has a Forward Rate of Return (Yacktman) % of 20.34% 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 Pro Medicus and its competitors. This is near median its historical median of 20.26. Over the past decade, Pro Medicus' Forward Rate of Return (Yacktman) % has ranged from 20.08 to 20.51. According to the industry distribution chart, Pro Medicus ranks #97 out of 340 companies in the Healthcare Providers & Services industry, placing it in the top 28.5%.
Is Pro Medicus' Forward Rate of Return (Yacktman) % too high?
Pro Medicus' current Forward Rate of Return (Yacktman) % of 20.34% is near median its 10-year median of 20.26. Over the past 10 years, this metric has ranged from a low of 20.08 to a high of 20.51. The Healthcare Providers & Services industry median Forward Rate of Return (Yacktman) % is 12.20. Pro Medicus' value of 20.34% is 66.7% above this industry median. Based on the distribution chart, Pro Medicus ranks #97 out of 340 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Pro Medicus has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Pro Medicus' Forward Rate of Return (Yacktman) % compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, Pro Medicus ranks #97 out of 340 companies for Forward Rate of Return (Yacktman) %. This puts Pro Medicus in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 12.20. Pro Medicus' value of 20.34% is 66.7% above this benchmark. Historically, Pro Medicus' own Forward Rate of Return (Yacktman) % has ranged from 20.08 to 20.51 over the past decade. While the company's 10-year median is 20.26 vs. the industry median of 12.20, Pro Medicus 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 Healthcare Providers & Services company?
The median Forward Rate of Return (Yacktman) % among Healthcare Providers & Services companies is 12.20, based on 340 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. Pro Medicus's current Forward Rate of Return (Yacktman) % of 20.34% is 66.7% 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 Pro Medicus and its competitors. For the Healthcare Providers & Services industry, the median Forward Rate of Return (Yacktman) % is 12.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pro Medicus's current Forward Rate of Return (Yacktman) % is 20.34%, which is near median its own 10-year median of 20.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pro Medicus stock overvalued right now?
Based on GuruFocus' analysis, Pro Medicus (PMDIY) is currently considered Possible Value Trap. The stock's GF Value™ is $35.74, compared to a current price of $23.45 — trading 34.4% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 20.34%, which is near median its 10-year median of 20.26 and 66.7% above the Healthcare Providers & Services industry median of 12.20. Pro Medicus' overall GF Score™ is 73/100 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 Pro Medicus (PMDIY), the current Forward Rate of Return (Yacktman) % is 20.34% 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 Pro Medicus (PMDIY) Overvalued in 2026?
Based on GuruFocus' analysis, Pro Medicus stock appears to be undervalued.
The current stock price of $23.45 is trading 34.4% below its estimated GF Value™ of $35.74.
GuruFocus considers Pro Medicus to be Possible Value Trap.
Key valuation signals for PMDIY:
Forward Rate of Return (Yacktman) %: 20.34% (near median its 10-year median of 20.26)
GF Value™: $35.74 vs. price of $23.45 (34.4% below fair value)
Industry Position: 66.7% above the Healthcare Providers & Services median (#97 of 340)
No single metric tells the full story. See the PMDIY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pro Medicus is a healthcare IT company specializing in radiology imaging software. Its main product, Visage 7, is a clinical desktop application that radiologists use to view, enhance, and manipulate images from any device and make a diagnosis. Its main customers are US private academic hospitals. In fiscal 2025, Pro Medicus earned 90% of revenue in North America, 8% from Australia, and the remaining 2% in Europe.
73GF Score
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