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Bajaj FinservBOM:532978 -0.35%84 5-Year Yield-on-Cost % is 0.07 as of Sep. 12, 2026, which is 40% above its 10-year median of 0.05. GuruFocus rates BOM:532978 with a GF Score™ of 84/100 and a GF Value™ of ₹2,326.55 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 46 Diversified Financial Services companies, Bajaj Finserv ranks worse than 97.83% on this metric.
Bajaj Finserv's yield on cost for the quarter that ended in Jun. 2026 was 0.07.
The historical rank and industry rank for Bajaj Finserv's 5-Year Yield-on-Cost % or its related term are showing as below:
BOM:532978'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.02 Med: 0.05 Max: 0.17
Current: 0.07
During the past 13 years, Bajaj Finserv's highest Yield on Cost was 0.17. The lowest was 0.02. And the median was 0.05.
BOM:532978's 5-Year Yield-on-Cost % is ranked worse than 97.83% of 46
companies
in the Diversified Financial Services industry
Industry Median: 4.31
vs BOM:532978: 0.07
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 Finserv 5-Year Yield-on-Cost % Related Terms
BOM:532978 vs FRHC, VOYA: 5-Year Yield-on-Cost % Comparison
For the Financial Conglomerates subindustry, Bajaj Finserv'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 Finserv 5-Year Yield-on-Cost % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Bajaj Finserv's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Bajaj Finserv'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 Finserv is calculated as
Bajaj Finserv (BOM:532978) has a 5-Year Yield-on-Cost % of 0.07 as of Sep. 12, 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 Finserv and its competitors. This is 40% above median its historical median of 0.05. Over the past decade, Bajaj Finserv's 5-Year Yield-on-Cost % has ranged from 0.02 to 0.17. According to the industry distribution chart, Bajaj Finserv ranks #45 out of 46 companies in the Diversified Financial Services industry, placing it in the top 97.8%.
Is Bajaj Finserv's 5-Year Yield-on-Cost % too high?
Bajaj Finserv's current 5-Year Yield-on-Cost % of 0.07 is 40% above median its 10-year median of 0.05. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 0.17. The Diversified Financial Services industry median 5-Year Yield-on-Cost % is 4.31. Bajaj Finserv's value of 0.07 is 98.4% below this industry median. Based on the distribution chart, Bajaj Finserv ranks #45 out of 46 companies in the Diversified Financial Services industry, which is in the bottom quartile relative to peers. Overall, Bajaj Finserv has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Finserv's 5-Year Yield-on-Cost % compare to FRHC and VOYA?
According to the Diversified Financial Services industry distribution chart, Bajaj Finserv ranks #45 out of 46 companies for 5-Year Yield-on-Cost %. This places Bajaj Finserv in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.31. Bajaj Finserv's value of 0.07 is 98.4% below this benchmark. Historically, Bajaj Finserv's own 5-Year Yield-on-Cost % has ranged from 0.02 to 0.17 over the past decade. While the company's 10-year median is 0.05 vs. the industry median of 4.31, Bajaj Finserv 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 Diversified Financial Services company?
The median 5-Year Yield-on-Cost % among Diversified Financial Services companies is 4.31, based on 46 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 Finserv's current 5-Year Yield-on-Cost % of 0.07 is 98.4% 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 Finserv and its competitors. For the Diversified Financial Services industry, the median 5-Year Yield-on-Cost % is 4.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Finserv's current 5-Year Yield-on-Cost % is 0.07, which is 40% above median its own 10-year median of 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Finserv stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Finserv (BOM:532978) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,326.55, compared to a current price of ₹1,917.30 — trading 17.6% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.07, which is 40% above median its 10-year median of 0.05 and 98.4% below the Diversified Financial Services industry median of 4.31. Bajaj Finserv's overall GF Score™ is 84/100 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 Finserv (BOM:532978), the current 5-Year Yield-on-Cost % is 0.07 as of Sep. 12, 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 Finserv (BOM:532978) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Finserv stock appears to be undervalued.
The current stock price of ₹1,917.30 is trading 17.6% below its estimated GF Value™ of ₹2,326.55.
GuruFocus considers Bajaj Finserv to be Modestly Undervalued.
Key valuation signals for BOM:532978:
5-Year Yield-on-Cost %: 0.07 (40% above median its 10-year median of 0.05)
GF Value™: ₹2,326.55 vs. price of ₹1,917.30 (17.6% below fair value)
Industry Position: 98.4% below the Diversified Financial Services median (#45 of 46)
No single metric tells the full story. See the BOM:532978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Finserv Ltd is a non-banking financial services company headquartered in India that engages in lending activities. It services six lending verticals: consumer, small and midsize enterprises, commercial, rural, deposits, and partnerships and services. Bajaj's consumer and rural lending consists of funding solutions for consumer durables, such as vehicles and furniture, to personal loans. The commercial lending activities consist of funding for plant and machinery assets and term loans to SMEs. Its business segments include: Life Insurance, General Insurance, Windpower, Retail Finance, and Investment and Others. It derives maximum revenue from the Retail Finance segment. Geographically, the company derives all of its revenue from its operations in India.
84GF Score
Get the complete analysis for BOM:532978
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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