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Universal Technical InstituteUTI +2.23%86 Forward Rate of Return (Yacktman) % is 12.23% as of Jun. 2026, which is 39% below its 10-year median of 20.07. GuruFocus rates UTI with a GF Score™ of 86/100 and a GF Value™ of $28.52 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 168 Education companies, Universal Technical Institute ranks worse than 56.55% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Universal Technical Institute's forward rate of return for was 12.23%.
The historical rank and industry rank for Universal Technical Institute's Forward Rate of Return (Yacktman) % or its related term are showing as below:
UTI'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 12.21 Med: 20.07 Max: 21.03
Current: 12.42
During the past 13 years, Universal Technical Institute's highest Forward Rate of Return was 21.03. The lowest was 12.21. And the median was 20.07.
UTI's Forward Rate of Return (Yacktman) % is ranked worse than 56.55% of 168
companies
in the Education industry
Industry Median: 16.175
vs UTI: 12.42
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.
Universal Technical Institute (NYSE:UTI) 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.
Universal Technical Institute Forward Rate of Return (Yacktman) % Related Terms
Universal Technical Institute Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Universal Technical Institute'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.
Universal Technical Institute Forward Rate of Return (Yacktman) % Chart
UTI vs PRDO, MH, DAO: Forward Rate of Return (Yacktman) % Comparison
For the Education & Training Services subindustry, Universal Technical Institute'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.
Universal Technical Institute Forward Rate of Return (Yacktman) % vs Education Industry
For the Education industry and Consumer Defensive sector, Universal Technical Institute's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Universal Technical Institute's Forward Rate of Return (Yacktman) % falls into.
Universal Technical Institute 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 12.23% mean?
Universal Technical Institute (UTI) has a Forward Rate of Return (Yacktman) % of 12.23% 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 Universal Technical Institute and its competitors. This is 39% below median its historical median of 20.07. Over the past decade, Universal Technical Institute's Forward Rate of Return (Yacktman) % has ranged from 12.21 to 21.03. According to the industry distribution chart, Universal Technical Institute ranks #95 out of 168 companies in the Education industry, placing it in the top 56.5%.
Is Universal Technical Institute's Forward Rate of Return (Yacktman) % too high?
Universal Technical Institute's current Forward Rate of Return (Yacktman) % of 12.23% is 39% below median its 10-year median of 20.07. Over the past 10 years, this metric has ranged from a low of 12.21 to a high of 21.03. The Education industry median Forward Rate of Return (Yacktman) % is 16.18. Universal Technical Institute's value of 12.23% is 24.4% below this industry median. Based on the distribution chart, Universal Technical Institute ranks #95 out of 168 companies in the Education industry, which is below the industry midpoint. Overall, Universal Technical Institute has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Technical Institute's Forward Rate of Return (Yacktman) % compare to PRDO and MH?
According to the Education industry distribution chart, Universal Technical Institute ranks #95 out of 168 companies for Forward Rate of Return (Yacktman) %. This places Universal Technical Institute in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 16.18. Universal Technical Institute's value of 12.23% is 24.4% below this benchmark. Historically, Universal Technical Institute's own Forward Rate of Return (Yacktman) % has ranged from 12.21 to 21.03 over the past decade. While the company's 10-year median is 20.07 vs. the industry median of 16.18, Universal Technical Institute has consistently been below 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 Education company?
The median Forward Rate of Return (Yacktman) % among Education companies is 16.18, based on 168 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. Universal Technical Institute's current Forward Rate of Return (Yacktman) % of 12.23% is 24.4% below 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 Universal Technical Institute and its competitors. For the Education industry, the median Forward Rate of Return (Yacktman) % is 16.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Technical Institute's current Forward Rate of Return (Yacktman) % is 12.23%, which is 39% below median its own 10-year median of 20.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Technical Institute stock overvalued right now?
Based on GuruFocus' analysis, Universal Technical Institute (UTI) is currently considered Modestly Undervalued. The stock's GF Value™ is $28.52, compared to a current price of $22.51 — trading 21.1% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 12.23%, which is 39% below median its 10-year median of 20.07 and 24.4% below the Education industry median of 16.18. Universal Technical Institute's overall GF Score™ is 86/100 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 Universal Technical Institute (UTI), the current Forward Rate of Return (Yacktman) % is 12.23% 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 Universal Technical Institute (UTI) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Technical Institute stock appears to be undervalued.
The current stock price of $22.51 is trading 21.1% below its estimated GF Value™ of $28.52.
GuruFocus considers Universal Technical Institute to be Modestly Undervalued.
Key valuation signals for UTI:
Forward Rate of Return (Yacktman) %: 12.23% (39% below median its 10-year median of 20.07)
GF Value™: $28.52 vs. price of $22.51 (21.1% below fair value)
Industry Position: 24.4% below the Education median (#95 of 168)
No single metric tells the full story. See the UTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Technical Institute Inc is an educational institution. It provides undergraduate degree, as well as certificate programs for technicians in the automotive, diesel, collision repair, motorcycle and marine fields. The company's reportable segment which includes Universal Technical Institute (UTI) and Concorde Career Colleges, Corporate. Majority of the revenue is generated from UTI segment which provides different kinds of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute and others. It also provides dealer technician training or instructor staffing services to manufacturers.
86GF Score
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