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Locaweb Servicos de InternetBSP:LWSA3 -2.44%81 5-Year Yield-on-Cost % is 7.08 as of Jul. 27, 2026, which is 608% above its 10-year median of 1.00. GuruFocus rates BSP:LWSA3 with a GF Score™ of 81/100 and a GF Value™ of R$5.07 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,018 Software companies, Locaweb Servicos de Internet ranks better than 80.65% on this metric.
The historical rank and industry rank for Locaweb Servicos de Internet's 5-Year Yield-on-Cost % or its related term are showing as below:
BSP:LWSA3'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.09 Med: 1 Max: 8.53
Current: 7.08
During the past 11 years, Locaweb Servicos de Internet's highest Yield on Cost was 8.53. The lowest was 0.09. And the median was 1.00.
BSP:LWSA3's 5-Year Yield-on-Cost % is ranked better than 80.65% of 1018
companies
in the Software industry
Industry Median: 3.14
vs BSP:LWSA3: 7.08
Locaweb Servicos de Internet (BSP:LWSA3) 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.
Locaweb Servicos de Internet 5-Year Yield-on-Cost % Related Terms
BSP:LWSA3 vs MSFT, ORCL, PLTR: 5-Year Yield-on-Cost % Comparison
For the Software - Infrastructure subindustry, Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Locaweb Servicos de Internet's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Locaweb Servicos de Internet's 5-Year Yield-on-Cost % falls into.
Locaweb Servicos de Internet 5-Year Yield-on-Cost % Calculation
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.
Locaweb Servicos de Internet (BSP:LWSA3) has a 5-Year Yield-on-Cost % of 7.08 as of Jul. 27, 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 Locaweb Servicos de Internet and its competitors. This is 608% above median its historical median of 1.00. Over the past decade, Locaweb Servicos de Internet's 5-Year Yield-on-Cost % has ranged from 0.09 to 8.53. According to the industry distribution chart, Locaweb Servicos de Internet ranks #197 out of 1018 companies in the Software industry, placing it in the top 19.4%.
Is Locaweb Servicos de Internet's 5-Year Yield-on-Cost % too high?
Locaweb Servicos de Internet's current 5-Year Yield-on-Cost % of 7.08 is 608% above median its 10-year median of 1.00. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 8.53. The Software industry median 5-Year Yield-on-Cost % is 3.14. Locaweb Servicos de Internet's value of 7.08 is 125.5% above this industry median. Based on the distribution chart, Locaweb Servicos de Internet ranks #197 out of 1018 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Locaweb Servicos de Internet has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locaweb Servicos de Internet's 5-Year Yield-on-Cost % compare to MSFT and ORCL?
According to the Software industry distribution chart, Locaweb Servicos de Internet ranks #197 out of 1018 companies for 5-Year Yield-on-Cost %. This places Locaweb Servicos de Internet in the top 19% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.14. Locaweb Servicos de Internet's value of 7.08 is 125.5% above this benchmark. Historically, Locaweb Servicos de Internet's own 5-Year Yield-on-Cost % has ranged from 0.09 to 8.53 over the past decade. While the company's 10-year median is 1.00 vs. the industry median of 3.14, Locaweb Servicos de Internet 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 a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.14, based on 1,018 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. Locaweb Servicos de Internet's current 5-Year Yield-on-Cost % of 7.08 is 125.5% 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 Locaweb Servicos de Internet and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locaweb Servicos de Internet's current 5-Year Yield-on-Cost % is 7.08, which is 608% above median its own 10-year median of 1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locaweb Servicos de Internet stock overvalued right now?
Based on GuruFocus' analysis, Locaweb Servicos de Internet (BSP:LWSA3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$5.07, compared to a current price of R$3.60 — trading 29% below its estimated fair value. The current 5-Year Yield-on-Cost % is 7.08, which is 608% above median its 10-year median of 1.00 and 125.5% above the Software industry median of 3.14. Locaweb Servicos de Internet's overall GF Score™ is 81/100 with 1 warning sign 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 Locaweb Servicos de Internet (BSP:LWSA3), the current 5-Year Yield-on-Cost % is 7.08 as of Jul. 27, 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 Locaweb Servicos de Internet (BSP:LWSA3) Overvalued in 2026?
Based on GuruFocus' analysis, Locaweb Servicos de Internet stock appears to be undervalued.
The current stock price of R$3.60 is trading 29% below its estimated GF Value™ of R$5.07.
GuruFocus considers Locaweb Servicos de Internet to be Modestly Undervalued.
Key valuation signals for BSP:LWSA3:
5-Year Yield-on-Cost %: 7.08 (608% above median its 10-year median of 1.00)
GF Value™: R$5.07 vs. price of R$3.60 (29% below fair value)
Industry Position: 125.5% above the Software median (#197 of 1018)
No single metric tells the full story. See the BSP:LWSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS, and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services. It generates the majority of its revenue from the Commerce segment.
81GF 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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