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Permian ResourcesPR -0.09%67 Forward Rate of Return (Yacktman) % is 24.22% as of Mar. 2026, which is 1% below its 10-year median of 24.56. GuruFocus rates PR with a GF Score™ of 67/100 and a GF Value™ of $13.31 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 599 Oil & Gas companies, Permian Resources ranks better than 79.97% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Permian Resources's forward rate of return for was 24.22%.
The historical rank and industry rank for Permian Resources's Forward Rate of Return (Yacktman) % or its related term are showing as below:
PR'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 24.07 Med: 24.56 Max: 24.95
Current: 24.22
During the past 12 years, Permian Resources's highest Forward Rate of Return was 24.95. The lowest was 24.07. And the median was 24.56.
PR's Forward Rate of Return (Yacktman) % is ranked better than 79.97% of 599
companies
in the Oil & Gas industry
Industry Median: 13.5
vs PR: 24.22
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.
Permian Resources (NYSE:PR) 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.
Permian Resources Forward Rate of Return (Yacktman) % Related Terms
Permian Resources Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Permian Resources'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.
Permian Resources Forward Rate of Return (Yacktman) % Chart
PR vs OVV, EXE, APA: Forward Rate of Return (Yacktman) % Comparison
For the Oil & Gas E&P subindustry, Permian Resources'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.
Permian Resources Forward Rate of Return (Yacktman) % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Permian Resources's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Permian Resources's Forward Rate of Return (Yacktman) % falls into.
Permian Resources 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 24.22% mean?
Permian Resources (PR) has a Forward Rate of Return (Yacktman) % of 24.22% 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 Permian Resources and its competitors. This is near median its historical median of 24.56. Over the past decade, Permian Resources' Forward Rate of Return (Yacktman) % has ranged from 24.07 to 24.95. According to the industry distribution chart, Permian Resources ranks #120 out of 599 companies in the Oil & Gas industry, placing it in the top 20%.
Is Permian Resources' Forward Rate of Return (Yacktman) % too high?
Permian Resources' current Forward Rate of Return (Yacktman) % of 24.22% is near median its 10-year median of 24.56. Over the past 10 years, this metric has ranged from a low of 24.07 to a high of 24.95. The Oil & Gas industry median Forward Rate of Return (Yacktman) % is 13.50. Permian Resources' value of 24.22% is 79.4% above this industry median. Based on the distribution chart, Permian Resources ranks #120 out of 599 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Permian Resources has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Permian Resources' Forward Rate of Return (Yacktman) % compare to OVV and EXE?
According to the Oil & Gas industry distribution chart, Permian Resources ranks #120 out of 599 companies for Forward Rate of Return (Yacktman) %. This places Permian Resources in the top 20% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 13.50. Permian Resources' value of 24.22% is 79.4% above this benchmark. Historically, Permian Resources' own Forward Rate of Return (Yacktman) % has ranged from 24.07 to 24.95 over the past decade. While the company's 10-year median is 24.56 vs. the industry median of 13.50, Permian Resources 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 Oil & Gas company?
The median Forward Rate of Return (Yacktman) % among Oil & Gas companies is 13.50, based on 599 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. Permian Resources's current Forward Rate of Return (Yacktman) % of 24.22% is 79.4% 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 Permian Resources and its competitors. For the Oil & Gas industry, the median Forward Rate of Return (Yacktman) % is 13.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Permian Resources's current Forward Rate of Return (Yacktman) % is 24.22%, which is near median its own 10-year median of 24.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Permian Resources stock overvalued right now?
Based on GuruFocus' analysis, Permian Resources (PR) is currently considered Significantly Overvalued. The stock's GF Value™ is $13.31, compared to a current price of $21.35 — trading 60.4% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 24.22%, which is near median its 10-year median of 24.56 and 79.4% above the Oil & Gas industry median of 13.50. Permian Resources' overall GF Score™ is 67/100 with 9 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 Permian Resources (PR), the current Forward Rate of Return (Yacktman) % is 24.22% 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.
Is Permian Resources (PR) Overvalued in 2026?
Based on GuruFocus' analysis, Permian Resources stock appears to be overvalued.
The current stock price of $21.35 is trading 60.4% above its estimated GF Value™ of $13.31.
GuruFocus considers Permian Resources to be Significantly Overvalued.
Key valuation signals for PR:
Forward Rate of Return (Yacktman) %: 24.22% (near median its 10-year median of 24.56)
GF Value™: $13.31 vs. price of $21.35 (60.4% above fair value)
Industry Position: 79.4% above the Oil & Gas median (#120 of 599)
No single metric tells the full story. See the PR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Permian Resources Corp is an independent oil and natural gas company focused on generating outsized returns to stakeholders through the responsible acquisition, optimization, and development of oil and liquids-rich natural gas assets. The Company's assets and operations are concentrated in the core of the Permian Basin, and its properties consist of large, contiguous acreage blocks located in West Texas and New Mexico.
67GF Score
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