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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.
Pepper MoneyASX:PPM -2.70%48 5-Year Yield-on-Cost % is 8.53 as of Jul. 14, 2026, which is 28% above its 10-year median of 6.64. GuruFocus rates ASX:PPM with a GF Score™ of 48/100 and a GF Value™ of A$1.42 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 210 Credit Services companies, Pepper Money ranks better than 78.57% on this metric.
Pepper Money's yield on cost for the quarter that ended in Dec. 2025 was 8.53.
The historical rank and industry rank for Pepper Money's 5-Year Yield-on-Cost % or its related term are showing as below:
ASX:PPM'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 4.07 Med: 6.64 Max: 12.52
Current: 8.53
During the past 6 years, Pepper Money's highest Yield on Cost was 12.52. The lowest was 4.07. And the median was 6.64.
ASX:PPM's 5-Year Yield-on-Cost % is ranked better than 78.57% of 210
companies
in the Credit Services industry
Industry Median: 4.53
vs ASX:PPM: 8.53
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.
Pepper Money 5-Year Yield-on-Cost % Related Terms
ASX:PPM vs V, MA, AXP: 5-Year Yield-on-Cost % Comparison
For the Credit Services subindustry, Pepper Money'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.
Pepper Money 5-Year Yield-on-Cost % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Pepper Money's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Pepper Money'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 Pepper Money is calculated as
Pepper Money (ASX:PPM) has a 5-Year Yield-on-Cost % of 8.53 as of Jul. 14, 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 Pepper Money and its competitors. This is 28% above median its historical median of 6.64. Over the past decade, Pepper Money's 5-Year Yield-on-Cost % has ranged from 4.07 to 12.52. According to the industry distribution chart, Pepper Money ranks #45 out of 210 companies in the Credit Services industry, placing it in the top 21.4%.
Is Pepper Money's 5-Year Yield-on-Cost % too high?
Pepper Money's current 5-Year Yield-on-Cost % of 8.53 is 28% above median its 10-year median of 6.64. Over the past 10 years, this metric has ranged from a low of 4.07 to a high of 12.52. The Credit Services industry median 5-Year Yield-on-Cost % is 4.53. Pepper Money's value of 8.53 is 88.3% above this industry median. Based on the distribution chart, Pepper Money ranks #45 out of 210 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Pepper Money has a GF Score™ of 48/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pepper Money's 5-Year Yield-on-Cost % compare to V and MA?
According to the Credit Services industry distribution chart, Pepper Money ranks #45 out of 210 companies for 5-Year Yield-on-Cost %. This places Pepper Money in the top 21% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 4.53. Pepper Money's value of 8.53 is 88.3% above this benchmark. Historically, Pepper Money's own 5-Year Yield-on-Cost % has ranged from 4.07 to 12.52 over the past decade. While the company's 10-year median is 6.64 vs. the industry median of 4.53, Pepper Money 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 5-Year Yield-on-Cost % for a Credit Services company?
The median 5-Year Yield-on-Cost % among Credit Services companies is 4.53, based on 210 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. Pepper Money's current 5-Year Yield-on-Cost % of 8.53 is 88.3% 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 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 Pepper Money and its competitors. For the Credit Services industry, the median 5-Year Yield-on-Cost % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pepper Money's current 5-Year Yield-on-Cost % is 8.53, which is 28% above median its own 10-year median of 6.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pepper Money stock overvalued right now?
Based on GuruFocus' analysis, Pepper Money (ASX:PPM) is currently considered Modestly Overvalued. The stock's GF Value™ is A$1.42, compared to a current price of A$1.62 — trading 14.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 8.53, which is 28% above median its 10-year median of 6.64 and 88.3% above the Credit Services industry median of 4.53. Pepper Money's overall GF Score™ is 48/100 with 2 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 Pepper Money (ASX:PPM), the current 5-Year Yield-on-Cost % is 8.53 as of Jul. 14, 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 Pepper Money (ASX:PPM) Overvalued in 2026?
Based on GuruFocus' analysis, Pepper Money stock appears to be overvalued.
The current stock price of A$1.62 is trading 14.1% above its estimated GF Value™ of A$1.42.
GuruFocus considers Pepper Money to be Modestly Overvalued.
Key valuation signals for ASX:PPM:
5-Year Yield-on-Cost %: 8.53 (28% above median its 10-year median of 6.64)
GF Value™: A$1.42 vs. price of A$1.62 (14.1% above fair value)
Industry Position: 88.3% above the Credit Services median (#45 of 210)
No single metric tells the full story. See the ASX:PPM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pepper Money Ltd provides a variety of home loan solutions. The company also provides car loans, personal loans, loans for equipment, asset finance, commercial loans, and others. The company operates in three reportable segments Mortgage, Asset Finance, and Loan and Other Servicing. The maximum revenue is derived from the Asset finance segment. The Asset finance segment includes financing a range of asset types for consumer and commercial customers.
48GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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