BAE SystemsBAESY +0.02%90 5-Year Yield-on-Cost % is 2.89 as of Jul. 11, 2026, which is 43% below its 10-year median of 5.07. GuruFocus rates BAESY with a GF Score™ of 90/100 and a GF Value™ of $91.36 (Fairly Valued). The stock has 2 warning signs investors should review. Among 172 Aerospace & Defense companies, BAE Systems ranks better than 76.16% on this metric.
BAE Systems's yield on cost for the quarter that ended in Dec. 2025 was 2.89.
The historical rank and industry rank for BAE Systems's 5-Year Yield-on-Cost % or its related term are showing as below:
BAESY'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.19 Med: 5.07 Max: 8.44
Current: 2.89
During the past 13 years, BAE Systems's highest Yield on Cost was 8.44. The lowest was 2.19. And the median was 5.07.
BAESY's 5-Year Yield-on-Cost % is ranked better than 76.16% of 172
companies
in the Aerospace & Defense industry
Industry Median: 1.035
vs BAESY: 2.89
BAE Systems (OTCPK:BAESY) 5-Year Yield-on-Cost % Explanation
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.
BAE Systems 5-Year Yield-on-Cost % Related Terms
BAESY vs SPCX, GE, RTX: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, BAE Systems'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.
BAE Systems 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where BAE Systems'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 BAE Systems is calculated as
BAE Systems (BAESY) has a 5-Year Yield-on-Cost % of 2.89 as of Jul. 11, 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 BAE Systems and its competitors. This is 43% below median its historical median of 5.07. Over the past decade, BAE Systems' 5-Year Yield-on-Cost % has ranged from 2.19 to 8.44. According to the industry distribution chart, BAE Systems ranks #41 out of 172 companies in the Aerospace & Defense industry, placing it in the top 23.8%.
Is BAE Systems' 5-Year Yield-on-Cost % too high?
BAE Systems' current 5-Year Yield-on-Cost % of 2.89 is 43% below median its 10-year median of 5.07. Over the past 10 years, this metric has ranged from a low of 2.19 to a high of 8.44. The Aerospace & Defense industry median 5-Year Yield-on-Cost % is 1.04. BAE Systems' value of 2.89 is 179.2% above this industry median. Based on the distribution chart, BAE Systems ranks #41 out of 172 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, BAE Systems has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' 5-Year Yield-on-Cost % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #41 out of 172 companies for 5-Year Yield-on-Cost %. This places BAE Systems in the top 24% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 1.04. BAE Systems' value of 2.89 is 179.2% above this benchmark. Historically, BAE Systems' own 5-Year Yield-on-Cost % has ranged from 2.19 to 8.44 over the past decade. While the company's 10-year median is 5.07 vs. the industry median of 1.04, BAE Systems 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 an Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.04, based on 172 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. BAE Systems's current 5-Year Yield-on-Cost % of 2.89 is 179.2% 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 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 BAE Systems and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current 5-Year Yield-on-Cost % is 2.89, which is 43% below median its own 10-year median of 5.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESY) is currently considered Fairly Valued. The stock's GF Value™ is $91.36, compared to a current price of $99.94 — trading 9.4% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.89, which is 43% below median its 10-year median of 5.07 and 179.2% above the Aerospace & Defense industry median of 1.04. BAE Systems' overall GF Score™ is 90/100 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 BAE Systems (BAESY), the current 5-Year Yield-on-Cost % is 2.89 as of Jul. 11, 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 BAE Systems (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $99.94 is trading 9.4% above its estimated GF Value™ of $91.36.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for BAESY:
5-Year Yield-on-Cost %: 2.89 (43% below median its 10-year median of 5.07)
GF Value™: $91.36 vs. price of $99.94 (9.4% above fair value)
Industry Position: 179.2% above the Aerospace & Defense median (#41 of 172)
No single metric tells the full story. See the BAESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
90GF Score
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