ChallengerASX:CGF +0.68%59 5-Year Yield-on-Cost % is 3.80 as of Jul. 07, 2026, which is 14% below its 10-year median of 4.43. GuruFocus rates ASX:CGF with a GF Score™ of 59/100 and a GF Value™ of A$4.00 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 423 Insurance companies, Challenger ranks worse than 52.01% on this metric.
Challenger's yield on cost for the quarter that ended in Dec. 2025 was 3.80.
The historical rank and industry rank for Challenger's 5-Year Yield-on-Cost % or its related term are showing as below:
ASX:CGF'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.64 Med: 4.43 Max: 12.7
Current: 3.8
During the past 13 years, Challenger's highest Yield on Cost was 12.70. The lowest was 1.64. And the median was 4.43.
ASX:CGF's 5-Year Yield-on-Cost % is ranked worse than 52.01% of 423
companies
in the Insurance industry
Industry Median: 4
vs ASX:CGF: 3.80
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Challenger 5-Year Yield-on-Cost % Related Terms
ASX:CGF vs AFL, MET, PRU: 5-Year Yield-on-Cost % Comparison
For the Insurance - Life subindustry, Challenger's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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.
Challenger 5-Year Yield-on-Cost % vs Insurance Industry
For the Insurance industry and Financial Services sector, Challenger's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Challenger's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Challenger is calculated as
Challenger (ASX:CGF) has a 5-Year Yield-on-Cost % of 3.80 as of Jul. 07, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Challenger and its competitors. This is 14% below median its historical median of 4.43. Over the past decade, Challenger's 5-Year Yield-on-Cost % has ranged from 1.64 to 12.70. According to the industry distribution chart, Challenger ranks #220 out of 423 companies in the Insurance industry, placing it in the top 52%.
Is Challenger's 5-Year Yield-on-Cost % too high?
Challenger's current 5-Year Yield-on-Cost % of 3.80 is 14% below median its 10-year median of 4.43. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 12.70. The Insurance industry median 5-Year Yield-on-Cost % is 4.00. Challenger's value of 3.80 is 5% below this industry median. Based on the distribution chart, Challenger ranks #220 out of 423 companies in the Insurance industry, which is below the industry midpoint. Overall, Challenger has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Challenger's 5-Year Yield-on-Cost % compare to AFL and MET?
According to the Insurance industry distribution chart, Challenger ranks #220 out of 423 companies for 5-Year Yield-on-Cost %. This places Challenger in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.00. Challenger's value of 3.80 is 5% below this benchmark. Historically, Challenger's own 5-Year Yield-on-Cost % has ranged from 1.64 to 12.70 over the past decade. While the company's 10-year median is 4.43 vs. the industry median of 4.00, Challenger 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 5-Year Yield-on-Cost % for an Insurance company?
The median 5-Year Yield-on-Cost % among Insurance companies is 4.00, based on 423 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Challenger's current 5-Year Yield-on-Cost % of 3.80 is 5% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Challenger and its competitors. For the Insurance industry, the median 5-Year Yield-on-Cost % is 4.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Challenger's current 5-Year Yield-on-Cost % is 3.80, which is 14% below median its own 10-year median of 4.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Challenger stock overvalued right now?
Based on GuruFocus' analysis, Challenger (ASX:CGF) is currently considered Significantly Overvalued. The stock's GF Value™ is A$4.00, compared to a current price of A$10.40 — trading 160% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.80, which is 14% below median its 10-year median of 4.43 and 5% below the Insurance industry median of 4.00. Challenger's overall GF Score™ is 59/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Challenger (ASX:CGF), the current 5-Year Yield-on-Cost % is 3.80 as of Jul. 07, 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 Challenger (ASX:CGF) Overvalued in 2026?
Based on GuruFocus' analysis, Challenger stock appears to be overvalued.
The current stock price of A$10.40 is trading 160% above its estimated GF Value™ of A$4.00.
GuruFocus considers Challenger to be Significantly Overvalued.
Key valuation signals for ASX:CGF:
5-Year Yield-on-Cost %: 3.80 (14% below median its 10-year median of 4.43)
GF Value™: A$4.00 vs. price of A$10.40 (160% above fair value)
Industry Position: 5% below the Insurance median (#220 of 423)
No single metric tells the full story. See the ASX:CGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an upfront lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.
59GF Score
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