Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Unity BancorpUNTY -0.73%72 Forward Rate of Return (Yacktman) % is 20.39% as of Jun. 2026, which is 10% below its 10-year median of 22.69. GuruFocus rates UNTY with a GF Scoreâ„¢ of 72/100 and a GF Valueâ„¢ of $53.80 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,418 Banks companies, Unity Bancorp ranks better than 67.42% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Unity Bancorp's forward rate of return for was 20.39%.
The historical rank and industry rank for Unity Bancorp's Forward Rate of Return (Yacktman) % or its related term are showing as below:
UNTY'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 12.1 Med: 22.69 Max: 31.24
Current: 20.3
During the past 13 years, Unity Bancorp's highest Forward Rate of Return was 31.24. The lowest was 12.10. And the median was 22.69.
UNTY's Forward Rate of Return (Yacktman) % is ranked better than 67.42% of 1418
companies
in the Banks industry
Industry Median: 15.34
vs UNTY: 20.30
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.
Unity Bancorp (NAS:UNTY) 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.
Unity Bancorp Forward Rate of Return (Yacktman) % Related Terms
Unity Bancorp Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Unity Bancorp'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.
Unity Bancorp Forward Rate of Return (Yacktman) % Chart
UNTY vs SFST, BWB, CBNK: Forward Rate of Return (Yacktman) % Comparison
For the Banks - Regional subindustry, Unity Bancorp'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.
Unity Bancorp Forward Rate of Return (Yacktman) % vs Banks Industry
For the Banks industry and Financial Services sector, Unity Bancorp's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Unity Bancorp's Forward Rate of Return (Yacktman) % falls into.
Unity Bancorp 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).
Unity Bancorp's Forward Rate of Return of Jun. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year Book Value Growth Rate
=
3.1872381
/
58.69
+
0.1496
=
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 20.39% mean?
Unity Bancorp (UNTY) has a Forward Rate of Return (Yacktman) % of 20.39% 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 Unity Bancorp and its competitors. This is 10% below median its historical median of 22.69. Over the past decade, Unity Bancorp's Forward Rate of Return (Yacktman) % has ranged from 12.10 to 31.24. According to the industry distribution chart, Unity Bancorp ranks #462 out of 1418 companies in the Banks industry, placing it in the top 32.6%.
Is Unity Bancorp's Forward Rate of Return (Yacktman) % too high?
Unity Bancorp's current Forward Rate of Return (Yacktman) % of 20.39% is 10% below median its 10-year median of 22.69. Over the past 10 years, this metric has ranged from a low of 12.10 to a high of 31.24. The Banks industry median Forward Rate of Return (Yacktman) % is 15.34. Unity Bancorp's value of 20.39% is 32.9% above this industry median. Based on the distribution chart, Unity Bancorp ranks #462 out of 1418 companies in the Banks industry, which is above the industry midpoint. Overall, Unity Bancorp has a GF Scoreâ„¢ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Unity Bancorp's Forward Rate of Return (Yacktman) % compare to SFST and BWB?
According to the Banks industry distribution chart, Unity Bancorp ranks #462 out of 1418 companies for Forward Rate of Return (Yacktman) %. This puts Unity Bancorp in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 15.34. Unity Bancorp's value of 20.39% is 32.9% above this benchmark. Historically, Unity Bancorp's own Forward Rate of Return (Yacktman) % has ranged from 12.10 to 31.24 over the past decade. While the company's 10-year median is 22.69 vs. the industry median of 15.34, Unity Bancorp 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 15.34, 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. Unity Bancorp's current Forward Rate of Return (Yacktman) % of 20.39% is 32.9% 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 Unity Bancorp and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Unity Bancorp's current Forward Rate of Return (Yacktman) % is 20.39%, which is 10% below median its own 10-year median of 22.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Unity Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Unity Bancorp (UNTY) is currently considered Modestly Overvalued. The stock's GF Value™ is $53.80, compared to a current price of $59.64 — trading 10.9% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 20.39%, which is 10% below median its 10-year median of 22.69 and 32.9% above the Banks industry median of 15.34. Unity Bancorp's overall GF Score™ is 72/100 with 6 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 Unity Bancorp (UNTY), the current Forward Rate of Return (Yacktman) % is 20.39% 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 Unity Bancorp (UNTY) Overvalued in 2026?
Based on GuruFocus' analysis, Unity Bancorp stock appears to be overvalued.
The current stock price of $59.64 is trading 10.9% above its estimated GF Value™ of $53.80.
GuruFocus considers Unity Bancorp to be Modestly Overvalued.
Key valuation signals for UNTY:
Forward Rate of Return (Yacktman) %: 20.39% (10% below median its 10-year median of 22.69)
GF Value™: $53.80 vs. price of $59.64 (10.9% above fair value)
Industry Position: 32.9% above the Banks median (#462 of 1418)
No single metric tells the full story. See the UNTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Unity Bancorp Inc is a bank holding company that serves as a holding company for Unity Bank. The Company has elected to become a financial holding company pursuant to regulations of the Board of Governors of the Federal Reserve System (the FRB). The Company's primary business is ownership and supervision of the Bank. The Company and the Bank derive a majority of their revenue from net interest income (i.e., the difference between the interest received on loans and securities and the interest paid on deposits and borrowings). The Company, through the Bank, conducts a traditional and community-oriented commercial banking business and services, personal and business checking accounts, time deposits, money market accounts, savings accounts, credit cards, automated teller service, and others.
72GF Score
Get the complete analysis for UNTY
Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
UNTY has been successfully added to your 
