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.
Bank of AmericaXSWX:BAC -2.52%75 Forward Rate of Return (Yacktman) % is 10.37% as of Mar. 2026, which is 15% below its 10-year median of 12.20. GuruFocus rates XSWX:BAC with a GF Score™ of 75/100 and a GF Value™ of CHF40.65. The stock has 7 warning signs investors should review. Among 1,415 Banks companies, Bank of America ranks worse than 75.48% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Bank of America's forward rate of return for was 10.37%.
The historical rank and industry rank for Bank of America's Forward Rate of Return (Yacktman) % or its related term are showing as below:
XSWX:BAC'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 7.03 Med: 12.2 Max: 29.09
Current: 9.5
During the past 13 years, Bank of America's highest Forward Rate of Return was 29.09. The lowest was 7.03. And the median was 12.20.
XSWX:BAC's Forward Rate of Return (Yacktman) % is ranked worse than 75.48% of 1415
companies
in the Banks industry
Industry Median: 15.4
vs XSWX:BAC: 9.50
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.
Bank of America (XSWX:BAC) 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.
Bank of America Forward Rate of Return (Yacktman) % Related Terms
Bank of America Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Bank of America'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.
Bank of America Forward Rate of Return (Yacktman) % Chart
XSWX:BAC vs WFC, C, BNY: Forward Rate of Return (Yacktman) % Comparison
For the Banks - Diversified subindustry, Bank of America'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.
Bank of America Forward Rate of Return (Yacktman) % vs Banks Industry
For the Banks industry and Financial Services sector, Bank of America's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Bank of America's Forward Rate of Return (Yacktman) % falls into.
Bank of America 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 10.37% mean?
Bank of America (XSWX:BAC) has a Forward Rate of Return (Yacktman) % of 10.37% 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 Bank of America and its competitors. This is 15% below median its historical median of 12.20. Over the past decade, Bank of America's Forward Rate of Return (Yacktman) % has ranged from 7.03 to 29.09. According to the industry distribution chart, Bank of America ranks #1068 out of 1415 companies in the Banks industry, placing it in the top 75.5%.
Is Bank of America's Forward Rate of Return (Yacktman) % too high?
Bank of America's current Forward Rate of Return (Yacktman) % of 10.37% is 15% below median its 10-year median of 12.20. Over the past 10 years, this metric has ranged from a low of 7.03 to a high of 29.09. The Banks industry median Forward Rate of Return (Yacktman) % is 15.40. Bank of America's value of 10.37% is 32.7% below this industry median. Based on the distribution chart, Bank of America ranks #1068 out of 1415 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Bank of America has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Bank of America's Forward Rate of Return (Yacktman) % compare to WFC and C?
According to the Banks industry distribution chart, Bank of America ranks #1068 out of 1415 companies for Forward Rate of Return (Yacktman) %. This places Bank of America in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 15.40. Bank of America's value of 10.37% is 32.7% below this benchmark. Historically, Bank of America's own Forward Rate of Return (Yacktman) % has ranged from 7.03 to 29.09 over the past decade. While the company's 10-year median is 12.20 vs. the industry median of 15.40, Bank of America 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 a Banks company?
The median Forward Rate of Return (Yacktman) % among Banks companies is 15.40, based on 1,415 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. Bank of America's current Forward Rate of Return (Yacktman) % of 10.37% is 32.7% 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 Bank of America and its competitors. For the Banks industry, the median Forward Rate of Return (Yacktman) % is 15.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bank of America's current Forward Rate of Return (Yacktman) % is 10.37%, which is 15% below median its own 10-year median of 12.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of America stock overvalued right now?
Bank of America (XSWX:BAC) has a current Forward Rate of Return (Yacktman) % of 10.37%. The stock's GF Value™ is CHF40.65, compared to a current price of CHF49.57 — trading 21.9% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 10.37%, which is 15% below median its 10-year median of 12.20 and 32.7% below the Banks industry median of 15.40. Bank of America's overall GF Score™ is 75/100 with 7 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 Bank of America (XSWX:BAC), the current Forward Rate of Return (Yacktman) % is 10.37% 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 Bank of America (XSWX:BAC) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of America stock appears to be overvalued.
The current stock price of CHF49.57 is trading 21.9% above its estimated GF Value™ of CHF40.65.
Key valuation signals for XSWX:BAC:
Forward Rate of Return (Yacktman) %: 10.37% (15% below median its 10-year median of 12.20)
GF Value™: CHF40.65 vs. price of CHF49.57 (21.9% above fair value)
Industry Position: 32.7% below the Banks median (#1068 of 1415)
No single metric tells the full story. See the XSWX:BAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. While the firm has maintained its stronghold among middle-market and retail clientele domestically, Bank of America has continued to hold its own on the global stage, as evidenced by its fourth-largest global trading operation and an investment banking division that regularly finishes in the top four in global league tables. The firm is organized across four segments: consumer banking, global wealth and investment management, global banking, and global markets.
75GF Score
Get the complete analysis for XSWX:BAC
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
XSWX:BAC has been successfully added to your 
