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Laurus LabsBOM:540222 -1.72%67 5-Year Yield-on-Cost % is 0.09 as of Sep. 05, 2026, which is 67% below its 10-year median of 0.27. GuruFocus rates BOM:540222 with a GF Score™ of 67/100 and a GF Value™ of ₹849.09 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 508 Drug Manufacturers companies, Laurus Labs ranks worse than 97.05% on this metric.
Laurus Labs's yield on cost for the quarter that ended in Jun. 2026 was 0.09.
The historical rank and industry rank for Laurus Labs's 5-Year Yield-on-Cost % or its related term are showing as below:
BOM:540222'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.08 Med: 0.27 Max: 0.7
Current: 0.09
During the past 13 years, Laurus Labs's highest Yield on Cost was 0.70. The lowest was 0.08. And the median was 0.27.
BOM:540222's 5-Year Yield-on-Cost % is ranked worse than 97.05% of 508
companies
in the Drug Manufacturers industry
Industry Median: 2.305
vs BOM:540222: 0.09
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.
Laurus Labs 5-Year Yield-on-Cost % Related Terms
BOM:540222 vs ZTS: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Laurus Labs'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.
Laurus Labs 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Laurus Labs's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Laurus Labs'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 Laurus Labs is calculated as
Laurus Labs (BOM:540222) has a 5-Year Yield-on-Cost % of 0.09 as of Sep. 05, 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 Laurus Labs and its competitors. This is 67% below median its historical median of 0.27. Over the past decade, Laurus Labs' 5-Year Yield-on-Cost % has ranged from 0.08 to 0.70. According to the industry distribution chart, Laurus Labs ranks #493 out of 508 companies in the Drug Manufacturers industry, placing it in the top 97%.
Is Laurus Labs' 5-Year Yield-on-Cost % too high?
Laurus Labs' current 5-Year Yield-on-Cost % of 0.09 is 67% below median its 10-year median of 0.27. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 0.70. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.31. Laurus Labs' value of 0.09 is 96.1% below this industry median. Based on the distribution chart, Laurus Labs ranks #493 out of 508 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Laurus Labs has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laurus Labs' 5-Year Yield-on-Cost % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Laurus Labs ranks #493 out of 508 companies for 5-Year Yield-on-Cost %. This places Laurus Labs in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 2.31. Laurus Labs' value of 0.09 is 96.1% below this benchmark. Historically, Laurus Labs' own 5-Year Yield-on-Cost % has ranged from 0.08 to 0.70 over the past decade. While the company's 10-year median is 0.27 vs. the industry median of 2.31, Laurus Labs 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 Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.31, based on 508 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. Laurus Labs's current 5-Year Yield-on-Cost % of 0.09 is 96.1% 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 Laurus Labs and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laurus Labs's current 5-Year Yield-on-Cost % is 0.09, which is 67% below median its own 10-year median of 0.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laurus Labs stock overvalued right now?
Based on GuruFocus' analysis, Laurus Labs (BOM:540222) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹849.09, compared to a current price of ₹1,840.00 — trading 116.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.09, which is 67% below median its 10-year median of 0.27 and 96.1% below the Drug Manufacturers industry median of 2.31. Laurus Labs' overall GF Score™ is 67/100 with 7 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 Laurus Labs (BOM:540222), the current 5-Year Yield-on-Cost % is 0.09 as of Sep. 05, 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 Laurus Labs (BOM:540222) Overvalued in 2026?
Based on GuruFocus' analysis, Laurus Labs stock appears to be overvalued.
The current stock price of ₹1,840.00 is trading 116.7% above its estimated GF Value™ of ₹849.09.
GuruFocus considers Laurus Labs to be Significantly Overvalued.
Key valuation signals for BOM:540222:
5-Year Yield-on-Cost %: 0.09 (67% below median its 10-year median of 0.27)
GF Value™: ₹849.09 vs. price of ₹1,840.00 (116.7% above fair value)
Industry Position: 96.1% below the Drug Manufacturers median (#493 of 508)
No single metric tells the full story. See the BOM:540222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laurus Labs Ltd is a pharmaceutical company based in India. It provides active pharmaceutical ingredients (API) including intermediates, Generic Finished dosage forms (FDF), and Contract Research services. The entity develops APIs and intermediates for select, high-growth antiretrovirals, Hepatitis C and Oncology. It also manufactures APIs in other therapeutic areas, such as anti-asthma, ophthalmology, anti-diabetics, cardiovascular, and proton pump inhibitors, among others. The company has its business presence in India and Outside India of which it derives a majority of revenue from Outside India. The company generates revenue from the sale of API, Intermediates and Formulations, Contract research services, and others.
67GF Score
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