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Westpac BankingASX:WBC -0.70%66 5-Year Yield-on-Cost % is 8.39 as of Jul. 14, 2026, which is 23% below its 10-year median of 10.91. GuruFocus rates ASX:WBC with a GF Score™ of 66/100 and a GF Value™ of A$35.96 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,257 Banks companies, Westpac Banking ranks better than 83.93% on this metric.
Westpac Banking's yield on cost for the quarter that ended in Mar. 2026 was 8.39.
The historical rank and industry rank for Westpac Banking's 5-Year Yield-on-Cost % or its related term are showing as below:
ASX:WBC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 5.94 Med: 10.91 Max: 25.18
Current: 8.39
During the past 13 years, Westpac Banking's highest Yield on Cost was 25.18. The lowest was 5.94. And the median was 10.91.
ASX:WBC's 5-Year Yield-on-Cost % is ranked better than 83.93% of 1257
companies
in the Banks industry
Industry Median: 3.89
vs ASX:WBC: 8.39
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.
Westpac Banking 5-Year Yield-on-Cost % Related Terms
ASX:WBC vs JPM, BAC, WFC: 5-Year Yield-on-Cost % Comparison
For the Banks - Diversified subindustry, Westpac Banking'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.
Westpac Banking 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Westpac Banking's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Westpac Banking'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 Westpac Banking is calculated as
Westpac Banking (ASX:WBC) has a 5-Year Yield-on-Cost % of 8.39 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 Westpac Banking and its competitors. This is 23% below median its historical median of 10.91. Over the past decade, Westpac Banking's 5-Year Yield-on-Cost % has ranged from 5.94 to 25.18. According to the industry distribution chart, Westpac Banking ranks #202 out of 1257 companies in the Banks industry, placing it in the top 16.1%.
Is Westpac Banking's 5-Year Yield-on-Cost % too high?
Westpac Banking's current 5-Year Yield-on-Cost % of 8.39 is 23% below median its 10-year median of 10.91. Over the past 10 years, this metric has ranged from a low of 5.94 to a high of 25.18. The Banks industry median 5-Year Yield-on-Cost % is 3.89. Westpac Banking's value of 8.39 is 115.7% above this industry median. Based on the distribution chart, Westpac Banking ranks #202 out of 1257 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Westpac Banking has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Westpac Banking's 5-Year Yield-on-Cost % compare to JPM and BAC?
According to the Banks industry distribution chart, Westpac Banking ranks #202 out of 1257 companies for 5-Year Yield-on-Cost %. This places Westpac Banking in the top 16% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.89. Westpac Banking's value of 8.39 is 115.7% above this benchmark. Historically, Westpac Banking's own 5-Year Yield-on-Cost % has ranged from 5.94 to 25.18 over the past decade. While the company's 10-year median is 10.91 vs. the industry median of 3.89, Westpac Banking 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 Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.89, based on 1,257 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. Westpac Banking's current 5-Year Yield-on-Cost % of 8.39 is 115.7% 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 Westpac Banking and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westpac Banking's current 5-Year Yield-on-Cost % is 8.39, which is 23% below median its own 10-year median of 10.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Westpac Banking stock overvalued right now?
Based on GuruFocus' analysis, Westpac Banking (ASX:WBC) is currently considered Fairly Valued. The stock's GF Value™ is A$35.96, compared to a current price of A$36.64 — trading 1.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 8.39, which is 23% below median its 10-year median of 10.91 and 115.7% above the Banks industry median of 3.89. Westpac Banking's overall GF Score™ is 66/100 with 3 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 Westpac Banking (ASX:WBC), the current 5-Year Yield-on-Cost % is 8.39 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 Westpac Banking (ASX:WBC) Overvalued in 2026?
Based on GuruFocus' analysis, Westpac Banking stock appears to be overvalued.
The current stock price of A$36.64 is trading 1.9% above its estimated GF Value™ of A$35.96.
GuruFocus considers Westpac Banking to be Fairly Valued.
Key valuation signals for ASX:WBC:
5-Year Yield-on-Cost %: 8.39 (23% below median its 10-year median of 10.91)
GF Value™: A$35.96 vs. price of A$36.64 (1.9% above fair value)
Industry Position: 115.7% above the Banks median (#202 of 1257)
No single metric tells the full story. See the ASX:WBC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Westpac is Australia's oldest bank and financial services group, with a significant franchise in Australia and New Zealand in the consumer, small business, corporate, and institutional sectors, in addition to its major presence in wealth management. Westpac is among a handful of banks around the globe currently retaining very high credit ratings. The bank benefits from a large national branch network and significant market share, particularly in home loans and retail deposits.
66GF 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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