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Ferguson EnterprisesFERG +1.55%89 5-Year Yield-on-Cost % is 3.04 as of Jul. 17, 2026, which is 16% below its 10-year median of 3.60. GuruFocus rates FERG with a GF Score™ of 89/100 and a GF Value™ of $231.45 (Fairly Valued). The stock has 1 warning sign investors should review. Among 102 Industrial Distribution companies, Ferguson Enterprises ranks worse than 62.75% on this metric.
Ferguson Enterprises's yield on cost for the quarter that ended in Mar. 2026 was 3.04.
The historical rank and industry rank for Ferguson Enterprises's 5-Year Yield-on-Cost % or its related term are showing as below:
FERG'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.53 Med: 3.6 Max: 5.87
Current: 3.04
During the past 13 years, Ferguson Enterprises's highest Yield on Cost was 5.87. The lowest was 2.53. And the median was 3.60.
FERG's 5-Year Yield-on-Cost % is ranked worse than 62.75% of 102
companies
in the Industrial Distribution industry
Industry Median: 3.81
vs FERG: 3.04
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.
Ferguson Enterprises 5-Year Yield-on-Cost % Related Terms
FERG vs FAST, GWW, WCC: 5-Year Yield-on-Cost % Comparison
For the Industrial Distribution subindustry, Ferguson Enterprises'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.
Ferguson Enterprises 5-Year Yield-on-Cost % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Ferguson Enterprises'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.
Ferguson Enterprises (FERG) has a 5-Year Yield-on-Cost % of 3.04 as of Jul. 17, 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 Ferguson Enterprises and its competitors. This is 16% below median its historical median of 3.60. Over the past decade, Ferguson Enterprises' 5-Year Yield-on-Cost % has ranged from 2.53 to 5.87. According to the industry distribution chart, Ferguson Enterprises ranks #64 out of 102 companies in the Industrial Distribution industry, placing it in the top 62.7%.
Is Ferguson Enterprises' 5-Year Yield-on-Cost % too high?
Ferguson Enterprises' current 5-Year Yield-on-Cost % of 3.04 is 16% below median its 10-year median of 3.60. Over the past 10 years, this metric has ranged from a low of 2.53 to a high of 5.87. The Industrial Distribution industry median 5-Year Yield-on-Cost % is 3.81. Ferguson Enterprises' value of 3.04 is 20.2% below this industry median. Based on the distribution chart, Ferguson Enterprises ranks #64 out of 102 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, Ferguson Enterprises has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ferguson Enterprises' 5-Year Yield-on-Cost % compare to FAST and GWW?
According to the Industrial Distribution industry distribution chart, Ferguson Enterprises ranks #64 out of 102 companies for 5-Year Yield-on-Cost %. This places Ferguson Enterprises in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.81. Ferguson Enterprises' value of 3.04 is 20.2% below this benchmark. Historically, Ferguson Enterprises' own 5-Year Yield-on-Cost % has ranged from 2.53 to 5.87 over the past decade. While the company's 10-year median is 3.60 vs. the industry median of 3.81, Ferguson Enterprises 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 an Industrial Distribution company?
The median 5-Year Yield-on-Cost % among Industrial Distribution companies is 3.81, based on 102 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. Ferguson Enterprises's current 5-Year Yield-on-Cost % of 3.04 is 20.2% 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 Ferguson Enterprises and its competitors. For the Industrial Distribution industry, the median 5-Year Yield-on-Cost % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferguson Enterprises's current 5-Year Yield-on-Cost % is 3.04, which is 16% below median its own 10-year median of 3.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ferguson Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Ferguson Enterprises (FERG) is currently considered Fairly Valued. The stock's GF Value™ is $231.45, compared to a current price of $234.10 — trading 1.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.04, which is 16% below median its 10-year median of 3.60 and 20.2% below the Industrial Distribution industry median of 3.81. Ferguson Enterprises' overall GF Score™ is 89/100 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 Ferguson Enterprises (FERG), the current 5-Year Yield-on-Cost % is 3.04 as of Jul. 17, 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 Ferguson Enterprises (FERG) Overvalued in 2026?
Based on GuruFocus' analysis, Ferguson Enterprises stock appears to be overvalued.
The current stock price of $234.10 is trading 1.1% above its estimated GF Value™ of $231.45.
GuruFocus considers Ferguson Enterprises to be Fairly Valued.
Key valuation signals for FERG:
5-Year Yield-on-Cost %: 3.04 (16% below median its 10-year median of 3.60)
GF Value™: $231.45 vs. price of $234.10 (1.1% above fair value)
Industry Position: 20.2% below the Industrial Distribution median (#64 of 102)
No single metric tells the full story. See the FERG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ferguson distributes plumbing and HVAC products to North American repair, maintenance, and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. The firm sold its UK business in 2021 and is now solely focused on the North American market.
89GF Score
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