Balfour BeattyBAFBF 82 5-Year Yield-on-Cost % is 1.65 as of Jul. 11, 2026, which is 8% below its 10-year median of 1.79. GuruFocus rates BAFBF with a GF Score™ of 82/100 and a GF Value™ of $7.84 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,013 Construction companies, Balfour Beatty ranks worse than 72.85% on this metric.
Balfour Beatty's yield on cost for the quarter that ended in Dec. 2025 was 1.65.
The historical rank and industry rank for Balfour Beatty's 5-Year Yield-on-Cost % or its related term are showing as below:
BAFBF'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.3 Med: 1.79 Max: 3.25
Current: 1.65
During the past 13 years, Balfour Beatty's highest Yield on Cost was 3.25. The lowest was 0.30. And the median was 1.79.
BAFBF's 5-Year Yield-on-Cost % is ranked worse than 72.85% of 1013
companies
in the Construction industry
Industry Median: 3.41
vs BAFBF: 1.65
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.
Balfour Beatty 5-Year Yield-on-Cost % Related Terms
BAFBF vs PWR, FIX, EME: 5-Year Yield-on-Cost % Comparison
For the Engineering & Construction subindustry, Balfour Beatty'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.
Balfour Beatty 5-Year Yield-on-Cost % vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Balfour Beatty'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 Balfour Beatty is calculated as
Balfour Beatty (BAFBF) has a 5-Year Yield-on-Cost % of 1.65 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 Balfour Beatty and its competitors. This is near median its historical median of 1.79. Over the past decade, Balfour Beatty's 5-Year Yield-on-Cost % has ranged from 0.30 to 3.25. According to the industry distribution chart, Balfour Beatty ranks #738 out of 1013 companies in the Construction industry, placing it in the top 72.9%.
Is Balfour Beatty's 5-Year Yield-on-Cost % too high?
Balfour Beatty's current 5-Year Yield-on-Cost % of 1.65 is near median its 10-year median of 1.79. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 3.25. The Construction industry median 5-Year Yield-on-Cost % is 3.41. Balfour Beatty's value of 1.65 is 51.6% below this industry median. Based on the distribution chart, Balfour Beatty ranks #738 out of 1013 companies in the Construction industry, which is below the industry midpoint. Overall, Balfour Beatty has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's 5-Year Yield-on-Cost % compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #738 out of 1013 companies for 5-Year Yield-on-Cost %. This places Balfour Beatty in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.41. Balfour Beatty's value of 1.65 is 51.6% below this benchmark. Historically, Balfour Beatty's own 5-Year Yield-on-Cost % has ranged from 0.30 to 3.25 over the past decade. While the company's 10-year median is 1.79 vs. the industry median of 3.41, Balfour Beatty 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 a Construction company?
The median 5-Year Yield-on-Cost % among Construction companies is 3.41, based on 1,013 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. Balfour Beatty's current 5-Year Yield-on-Cost % of 1.65 is 51.6% 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 Balfour Beatty and its competitors. For the Construction industry, the median 5-Year Yield-on-Cost % is 3.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balfour Beatty's current 5-Year Yield-on-Cost % is 1.65, which is near median its own 10-year median of 1.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BAFBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.84, compared to a current price of $11.20 — trading 42.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.65, which is near median its 10-year median of 1.79 and 51.6% below the Construction industry median of 3.41. Balfour Beatty's overall GF Score™ is 82/100 with 6 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 Balfour Beatty (BAFBF), the current 5-Year Yield-on-Cost % is 1.65 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 Balfour Beatty (BAFBF) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $11.20 is trading 42.9% above its estimated GF Value™ of $7.84.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BAFBF:
5-Year Yield-on-Cost %: 1.65 (near median its 10-year median of 1.79)
GF Value™: $7.84 vs. price of $11.20 (42.9% above fair value)
Industry Position: 51.6% below the Construction median (#738 of 1013)
No single metric tells the full story. See the BAFBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
82GF Score
Get the complete analysis for BAFBF
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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