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adidas AGXSWX:ADS +0.61%85 Forward Rate of Return (Yacktman) % is 6.06% as of Mar. 2026, which is 34% below its 10-year median of 9.20. GuruFocus rates XSWX:ADS with a GF Score™ of 85/100 and a GF Value™ of CHF192.77 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 817 Manufacturing - Apparel & Accessories companies, adidas AG ranks worse than 50.18% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. adidas AG's forward rate of return for was 6.06%.
The historical rank and industry rank for adidas AG's Forward Rate of Return (Yacktman) % or its related term are showing as below:
XSWX:ADS'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -12.81 Med: 9.2 Max: 23.81
Current: 5.15
During the past 13 years, adidas AG's highest Forward Rate of Return was 23.81. The lowest was -12.81. And the median was 9.20.
XSWX:ADS's Forward Rate of Return (Yacktman) % is ranked worse than 50.18% of 817
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.26
vs XSWX:ADS: 5.15
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.
adidas AG (XSWX:ADS) 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.
adidas AG Forward Rate of Return (Yacktman) % Related Terms
adidas AG Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for adidas AG'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.
adidas AG Forward Rate of Return (Yacktman) % Chart
XSWX:ADS vs NKE, DECK, ONON: Forward Rate of Return (Yacktman) % Comparison
For the Footwear & Accessories subindustry, adidas AG'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.
adidas AG Forward Rate of Return (Yacktman) % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, adidas AG's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where adidas AG's Forward Rate of Return (Yacktman) % falls into.
adidas AG 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).
adidas AG's Forward Rate of Return of Mar. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
5.76133333
/
122.55
+
-0.0167
=
3.03 %
* 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 6.06% mean?
adidas AG (XSWX:ADS) has a Forward Rate of Return (Yacktman) % of 6.06% 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 adidas AG and its competitors. This is 34% below median its historical median of 9.20. According to the industry distribution chart, adidas AG ranks #410 out of 817 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 50.2%.
Is adidas AG's Forward Rate of Return (Yacktman) % too high?
adidas AG's current Forward Rate of Return (Yacktman) % of 6.06% is 34% below median its 10-year median of 9.20. The Manufacturing - Apparel & Accessories industry median Forward Rate of Return (Yacktman) % is 5.26. adidas AG's value of 6.06% is 15.2% above this industry median. Based on the distribution chart, adidas AG ranks #410 out of 817 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, adidas AG has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does adidas AG's Forward Rate of Return (Yacktman) % compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, adidas AG ranks #410 out of 817 companies for Forward Rate of Return (Yacktman) %. This places adidas AG in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 5.26. adidas AG's value of 6.06% is 15.2% above this benchmark. While the company's 10-year median is 9.20 vs. the industry median of 5.26, adidas AG 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 Manufacturing - Apparel & Accessories company?
The median Forward Rate of Return (Yacktman) % among Manufacturing - Apparel & Accessories companies is 5.26, based on 817 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. adidas AG's current Forward Rate of Return (Yacktman) % of 6.06% is 15.2% 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 adidas AG and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Forward Rate of Return (Yacktman) % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. adidas AG's current Forward Rate of Return (Yacktman) % is 6.06%, which is 34% below median its own 10-year median of 9.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is adidas AG stock overvalued right now?
Based on GuruFocus' analysis, adidas AG (XSWX:ADS) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF192.77, compared to a current price of CHF165.05 — trading 14.4% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 6.06%, which is 34% below median its 10-year median of 9.20 and 15.2% above the Manufacturing - Apparel & Accessories industry median of 5.26. adidas AG's overall GF Score™ is 85/100 with 1 warning sign 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 adidas AG (XSWX:ADS), the current Forward Rate of Return (Yacktman) % is 6.06% 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 adidas AG (XSWX:ADS) Overvalued in 2026?
Based on GuruFocus' analysis, adidas AG stock appears to be undervalued.
The current stock price of CHF165.05 is trading 14.4% below its estimated GF Value™ of CHF192.77.
GuruFocus considers adidas AG to be Modestly Undervalued.
Key valuation signals for XSWX:ADS:
Forward Rate of Return (Yacktman) %: 6.06% (34% below median its 10-year median of 9.20)
GF Value™: CHF192.77 vs. price of CHF165.05 (14.4% below fair value)
Industry Position: 15.2% above the Manufacturing - Apparel & Accessories median (#410 of 817)
No single metric tells the full story. See the XSWX:ADS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Adidas sells its products in more than 160 countries through about 2,000 owned retail stores, 15,000 Adidas-branded franchise stores (including about 8,000 in China), 150,000 wholesale doors, and an owned e-commerce site that is available in 67 countries. The company was founded in 1949 in Germany.
85GF Score
Get the complete analysis for XSWX:ADS
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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