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Preferred BankFRA:1IU 72 5-Year Yield-on-Cost % is 7.82 as of Aug. 16, 2026, which is 25% above its 10-year median of 6.27. GuruFocus rates FRA:1IU with a GF Score™ of 72/100 and a GF Value™ of €79.97. The stock has 5 warning signs investors should review. Among 1,256 Banks companies, Preferred Bank ranks better than 82.4% on this metric.
Preferred Bank's yield on cost for the quarter that ended in Mar. 2026 was 7.82.
The historical rank and industry rank for Preferred Bank's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:1IU'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.94 Med: 6.27 Max: 12.12
Current: 7.82
During the past 13 years, Preferred Bank's highest Yield on Cost was 12.12. The lowest was 2.94. And the median was 6.27.
FRA:1IU's 5-Year Yield-on-Cost % is ranked better than 82.4% of 1256
companies
in the Banks industry
Industry Median: 3.81
vs FRA:1IU: 7.82
Preferred Bank (FRA:1IU) 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.
Preferred Bank 5-Year Yield-on-Cost % Related Terms
FRA:1IU vs HBT, UVSP, OSBC: 5-Year Yield-on-Cost % Comparison
For the Banks - Regional subindustry, Preferred Bank'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.
Preferred Bank 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Preferred Bank's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Preferred Bank'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 Preferred Bank is calculated as
Preferred Bank (FRA:1IU) has a 5-Year Yield-on-Cost % of 7.82 as of Aug. 16, 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 Preferred Bank and its competitors. This is 25% above median its historical median of 6.27. Over the past decade, Preferred Bank's 5-Year Yield-on-Cost % has ranged from 2.94 to 12.12. According to the industry distribution chart, Preferred Bank ranks #221 out of 1256 companies in the Banks industry, placing it in the top 17.6%.
Is Preferred Bank's 5-Year Yield-on-Cost % too high?
Preferred Bank's current 5-Year Yield-on-Cost % of 7.82 is 25% above median its 10-year median of 6.27. Over the past 10 years, this metric has ranged from a low of 2.94 to a high of 12.12. The Banks industry median 5-Year Yield-on-Cost % is 3.81. Preferred Bank's value of 7.82 is 105.2% above this industry median. Based on the distribution chart, Preferred Bank ranks #221 out of 1256 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Preferred Bank has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Preferred Bank's 5-Year Yield-on-Cost % compare to HBT and UVSP?
According to the Banks industry distribution chart, Preferred Bank ranks #221 out of 1256 companies for 5-Year Yield-on-Cost %. This places Preferred Bank in the top 18% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.81. Preferred Bank's value of 7.82 is 105.2% above this benchmark. Historically, Preferred Bank's own 5-Year Yield-on-Cost % has ranged from 2.94 to 12.12 over the past decade. While the company's 10-year median is 6.27 vs. the industry median of 3.81, Preferred Bank 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 Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.81, based on 1,256 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. Preferred Bank's current 5-Year Yield-on-Cost % of 7.82 is 105.2% 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 Preferred Bank and its competitors. For the Banks 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. Preferred Bank's current 5-Year Yield-on-Cost % is 7.82, which is 25% above median its own 10-year median of 6.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Preferred Bank stock overvalued right now?
Preferred Bank (FRA:1IU) has a current 5-Year Yield-on-Cost % of 7.82. The stock's GF Value™ is €79.97, compared to a current price of €92.50 — trading 15.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 7.82, which is 25% above median its 10-year median of 6.27 and 105.2% above the Banks industry median of 3.81. Preferred Bank's overall GF Score™ is 72/100 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 Preferred Bank (FRA:1IU), the current 5-Year Yield-on-Cost % is 7.82 as of Aug. 16, 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 Preferred Bank (FRA:1IU) Overvalued in 2026?
Based on GuruFocus' analysis, Preferred Bank stock appears to be overvalued.
The current stock price of €92.50 is trading 15.7% above its estimated GF Value™ of €79.97.
Key valuation signals for FRA:1IU:
5-Year Yield-on-Cost %: 7.82 (25% above median its 10-year median of 6.27)
GF Value™: €79.97 vs. price of €92.50 (15.7% above fair value)
Industry Position: 105.2% above the Banks median (#221 of 1256)
No single metric tells the full story. See the FRA:1IU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Preferred Bank is a commercial bank located in California. Its products and services are divided into Personal Banking, Business Banking, and Commercial Banking, which include Checking accounts, Savings accounts, CDs, Loans and Credit, Electronic banking, and Treasury Management. It provides personalized deposit services, real estate finance, commercial loans, and trade finance credit facilities to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high-net-worth individuals.
72GF Score
Get the complete analysis for FRA:1IU
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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