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Bajaj FinanceBOM:500034 +0.80%76 5-Year Yield-on-Cost % is 0.50 as of Aug. 14, 2026, which is 61% above its 10-year median of 0.31. GuruFocus rates BOM:500034 with a GF Score™ of 76/100 and a GF Value™ of ₹1,146.17 (Fairly Valued). The stock has 5 warning signs investors should review. Among 212 Credit Services companies, Bajaj Finance ranks worse than 89.15% on this metric.
Bajaj Finance's yield on cost for the quarter that ended in Jun. 2026 was 0.50.
The historical rank and industry rank for Bajaj Finance's 5-Year Yield-on-Cost % or its related term are showing as below:
BOM:500034'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.11 Med: 0.31 Max: 0.84
Current: 0.5
During the past 13 years, Bajaj Finance's highest Yield on Cost was 0.84. The lowest was 0.11. And the median was 0.31.
BOM:500034's 5-Year Yield-on-Cost % is ranked worse than 89.15% of 212
companies
in the Credit Services industry
Industry Median: 4.48
vs BOM:500034: 0.50
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.
Bajaj Finance 5-Year Yield-on-Cost % Related Terms
BOM:500034 vs V, MA, AXP: 5-Year Yield-on-Cost % Comparison
For the Credit Services subindustry, Bajaj Finance'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.
Bajaj Finance 5-Year Yield-on-Cost % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Bajaj Finance's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Bajaj Finance'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 Bajaj Finance is calculated as
Bajaj Finance (BOM:500034) has a 5-Year Yield-on-Cost % of 0.50 as of Aug. 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 Bajaj Finance and its competitors. This is 61% above median its historical median of 0.31. Over the past decade, Bajaj Finance's 5-Year Yield-on-Cost % has ranged from 0.11 to 0.84. According to the industry distribution chart, Bajaj Finance ranks #189 out of 212 companies in the Credit Services industry, placing it in the top 89.2%.
Is Bajaj Finance's 5-Year Yield-on-Cost % too high?
Bajaj Finance's current 5-Year Yield-on-Cost % of 0.50 is 61% above median its 10-year median of 0.31. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 0.84. The Credit Services industry median 5-Year Yield-on-Cost % is 4.48. Bajaj Finance's value of 0.50 is 88.8% below this industry median. Based on the distribution chart, Bajaj Finance ranks #189 out of 212 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Bajaj Finance has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Finance's 5-Year Yield-on-Cost % compare to V and MA?
According to the Credit Services industry distribution chart, Bajaj Finance ranks #189 out of 212 companies for 5-Year Yield-on-Cost %. This places Bajaj Finance in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.48. Bajaj Finance's value of 0.50 is 88.8% below this benchmark. Historically, Bajaj Finance's own 5-Year Yield-on-Cost % has ranged from 0.11 to 0.84 over the past decade. While the company's 10-year median is 0.31 vs. the industry median of 4.48, Bajaj Finance 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 Credit Services company?
The median 5-Year Yield-on-Cost % among Credit Services companies is 4.48, based on 212 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. Bajaj Finance's current 5-Year Yield-on-Cost % of 0.50 is 88.8% 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 Bajaj Finance and its competitors. For the Credit Services industry, the median 5-Year Yield-on-Cost % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Finance's current 5-Year Yield-on-Cost % is 0.50, which is 61% above median its own 10-year median of 0.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Finance stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Finance (BOM:500034) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,146.17, compared to a current price of ₹1,090.70 — trading 4.8% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.50, which is 61% above median its 10-year median of 0.31 and 88.8% below the Credit Services industry median of 4.48. Bajaj Finance's overall GF Score™ is 76/100 with 5 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 Bajaj Finance (BOM:500034), the current 5-Year Yield-on-Cost % is 0.50 as of Aug. 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 Bajaj Finance (BOM:500034) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Finance stock appears to be undervalued.
The current stock price of ₹1,090.70 is trading 4.8% below its estimated GF Value™ of ₹1,146.17.
GuruFocus considers Bajaj Finance to be Fairly Valued.
Key valuation signals for BOM:500034:
5-Year Yield-on-Cost %: 0.50 (61% above median its 10-year median of 0.31)
GF Value™: ₹1,146.17 vs. price of ₹1,090.70 (4.8% below fair value)
Industry Position: 88.8% below the Credit Services median (#189 of 212)
No single metric tells the full story. See the BOM:500034 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Finance Ltd is the holding company for various financial services businesses under the Bajaj Group, which operates in India. The company is an NBFC in India offering payments, partnerships, services, and lending solutions to customers. The company's model is focused on the acquisition of customers and offering multiple loans and services on a cross-sell basis to meet their financial service needs. The company provides discretionary spending across consumer electronics, furniture, and digital products in India. The company's strategies and structure are closely aligned with those of commercial banks in India. All of its revenue is generated from India.
76GF 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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