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Air Arabia PJSCDFM:AIRARABIA +0.61%76 5-Year Yield-on-Cost % is 6.06 as of Aug. 27, 2026, which is 8% below its 10-year median of 6.60. GuruFocus rates DFM:AIRARABIA with a GF Score™ of 76/100 and a GF Value™ of د.إ3.90 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 650 Transportation companies, Air Arabia PJSC ranks better than 68.15% on this metric.
Air Arabia PJSC's yield on cost for the quarter that ended in Jun. 2026 was 6.06.
The historical rank and industry rank for Air Arabia PJSC's 5-Year Yield-on-Cost % or its related term are showing as below:
DFM:AIRARABIA'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.66 Med: 6.6 Max: 10.96
Current: 6.06
During the past 13 years, Air Arabia PJSC's highest Yield on Cost was 10.96. The lowest was 3.66. And the median was 6.60.
DFM:AIRARABIA's 5-Year Yield-on-Cost % is ranked better than 68.15% of 650
companies
in the Transportation industry
Industry Median: 3.975
vs DFM:AIRARABIA: 6.06
Air Arabia PJSC (DFM:AIRARABIA) 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.
Air Arabia PJSC 5-Year Yield-on-Cost % Related Terms
DFM:AIRARABIA vs DAL, UAL, LUV: 5-Year Yield-on-Cost % Comparison
For the Airlines subindustry, Air Arabia PJSC'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.
Air Arabia PJSC 5-Year Yield-on-Cost % vs Transportation Industry
For the Transportation industry and Industrials sector, Air Arabia PJSC's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Air Arabia PJSC's 5-Year Yield-on-Cost % falls into.
Air Arabia PJSC 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.
Therefore, Yield-on-Cost of Air Arabia PJSC is calculated as
Air Arabia PJSC (DFM:AIRARABIA) has a 5-Year Yield-on-Cost % of 6.06 as of Aug. 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 Air Arabia PJSC and its competitors. This is near median its historical median of 6.60. Over the past decade, Air Arabia PJSC's 5-Year Yield-on-Cost % has ranged from 3.66 to 10.96. According to the industry distribution chart, Air Arabia PJSC ranks #207 out of 650 companies in the Transportation industry, placing it in the top 31.8%.
Is Air Arabia PJSC's 5-Year Yield-on-Cost % too high?
Air Arabia PJSC's current 5-Year Yield-on-Cost % of 6.06 is near median its 10-year median of 6.60. Over the past 10 years, this metric has ranged from a low of 3.66 to a high of 10.96. The Transportation industry median 5-Year Yield-on-Cost % is 3.98. Air Arabia PJSC's value of 6.06 is 52.5% above this industry median. Based on the distribution chart, Air Arabia PJSC ranks #207 out of 650 companies in the Transportation industry, which is above the industry midpoint. Overall, Air Arabia PJSC has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air Arabia PJSC's 5-Year Yield-on-Cost % compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Arabia PJSC ranks #207 out of 650 companies for 5-Year Yield-on-Cost %. This puts Air Arabia PJSC in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.98. Air Arabia PJSC's value of 6.06 is 52.5% above this benchmark. Historically, Air Arabia PJSC's own 5-Year Yield-on-Cost % has ranged from 3.66 to 10.96 over the past decade. While the company's 10-year median is 6.60 vs. the industry median of 3.98, Air Arabia PJSC 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 Transportation company?
The median 5-Year Yield-on-Cost % among Transportation companies is 3.98, based on 650 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. Air Arabia PJSC's current 5-Year Yield-on-Cost % of 6.06 is 52.5% 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 Air Arabia PJSC and its competitors. For the Transportation industry, the median 5-Year Yield-on-Cost % is 3.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Arabia PJSC's current 5-Year Yield-on-Cost % is 6.06, which is near median its own 10-year median of 6.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Arabia PJSC stock overvalued right now?
Based on GuruFocus' analysis, Air Arabia PJSC (DFM:AIRARABIA) is currently considered Modestly Overvalued. The stock's GF Value™ is د.إ3.90, compared to a current price of د.إ4.98 — trading 27.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 6.06, which is near median its 10-year median of 6.60 and 52.5% above the Transportation industry median of 3.98. Air Arabia PJSC'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 Air Arabia PJSC (DFM:AIRARABIA), the current 5-Year Yield-on-Cost % is 6.06 as of Aug. 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 Air Arabia PJSC (DFM:AIRARABIA) Overvalued in 2026?
Based on GuruFocus' analysis, Air Arabia PJSC stock appears to be overvalued.
The current stock price of د.إ4.98 is trading 27.7% above its estimated GF Value™ of د.إ3.90.
GuruFocus considers Air Arabia PJSC to be Modestly Overvalued.
Key valuation signals for DFM:AIRARABIA:
5-Year Yield-on-Cost %: 6.06 (near median its 10-year median of 6.60)
GF Value™: د.إ3.90 vs. price of د.إ4.98 (27.7% above fair value)
Industry Position: 52.5% above the Transportation median (#207 of 650)
No single metric tells the full story. See the DFM:AIRARABIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Arabia PJSC is a group of airlines and companies offering travel and tourism services internationally. Its activities include international commercial air transportation, aircraft trading and rental, aircraft spare parts trading, passenger transport, cargo services, aviation training, aircraft repairs and maintenance, as well as travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services. The company operates through two segments: Airline, covering air transportation, aircraft rental, passenger transport, cargo services, aviation training, and aircraft repairs and maintenance, and Other, covering travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services.
76GF Score
Get the complete analysis for DFM:AIRARABIA
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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