GerdauFRA:GDUB -6.19%73 5-Year Yield-on-Cost % is 2.93 as of Jul. 09, 2026, which is 3% below its 10-year median of 3.02. GuruFocus rates FRA:GDUB with a GF Score™ of 73/100 and a GF Value™ of €3.12 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 318 Steel companies, Gerdau ranks worse than 50.94% on this metric.
Gerdau's yield on cost for the quarter that ended in Mar. 2026 was 2.93.
The historical rank and industry rank for Gerdau's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:GDUB'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.31 Med: 3.02 Max: 15.46
Current: 2.93
During the past 13 years, Gerdau's highest Yield on Cost was 15.46. The lowest was 0.31. And the median was 3.02.
FRA:GDUB's 5-Year Yield-on-Cost % is ranked worse than 50.94% of 318
companies
in the Steel industry
Industry Median: 3.31
vs FRA:GDUB: 2.93
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.
Gerdau 5-Year Yield-on-Cost % Related Terms
FRA:GDUB vs NUE, STLD, RS: 5-Year Yield-on-Cost % Comparison
For the Steel subindustry, Gerdau'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.
Gerdau 5-Year Yield-on-Cost % vs Steel Industry
For the Steel industry and Basic Materials sector, Gerdau's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Gerdau'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 Gerdau is calculated as
Gerdau (FRA:GDUB) has a 5-Year Yield-on-Cost % of 2.93 as of Jul. 09, 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 Gerdau and its competitors. This is near median its historical median of 3.02. Over the past decade, Gerdau's 5-Year Yield-on-Cost % has ranged from 0.31 to 15.46. According to the industry distribution chart, Gerdau ranks #162 out of 318 companies in the Steel industry, placing it in the top 50.9%.
Is Gerdau's 5-Year Yield-on-Cost % too high?
Gerdau's current 5-Year Yield-on-Cost % of 2.93 is near median its 10-year median of 3.02. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 15.46. The Steel industry median 5-Year Yield-on-Cost % is 3.31. Gerdau's value of 2.93 is 11.5% below this industry median. Based on the distribution chart, Gerdau ranks #162 out of 318 companies in the Steel industry, which is below the industry midpoint. Overall, Gerdau has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gerdau's 5-Year Yield-on-Cost % compare to NUE and STLD?
According to the Steel industry distribution chart, Gerdau ranks #162 out of 318 companies for 5-Year Yield-on-Cost %. This places Gerdau in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.31. Gerdau's value of 2.93 is 11.5% below this benchmark. Historically, Gerdau's own 5-Year Yield-on-Cost % has ranged from 0.31 to 15.46 over the past decade. While the company's 10-year median is 3.02 vs. the industry median of 3.31, Gerdau 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 Steel company?
The median 5-Year Yield-on-Cost % among Steel companies is 3.31, based on 318 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. Gerdau's current 5-Year Yield-on-Cost % of 2.93 is 11.5% 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 Gerdau and its competitors. For the Steel industry, the median 5-Year Yield-on-Cost % is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gerdau's current 5-Year Yield-on-Cost % is 2.93, which is near median its own 10-year median of 3.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gerdau stock overvalued right now?
Based on GuruFocus' analysis, Gerdau (FRA:GDUB) is currently considered Modestly Overvalued. The stock's GF Value™ is €3.12, compared to a current price of €3.64 — trading 16.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.93, which is near median its 10-year median of 3.02 and 11.5% below the Steel industry median of 3.31. Gerdau's overall GF Score™ is 73/100 with 8 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 Gerdau (FRA:GDUB), the current 5-Year Yield-on-Cost % is 2.93 as of Jul. 09, 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 Gerdau (FRA:GDUB) Overvalued in 2026?
Based on GuruFocus' analysis, Gerdau stock appears to be overvalued.
The current stock price of €3.64 is trading 16.7% above its estimated GF Value™ of €3.12.
GuruFocus considers Gerdau to be Modestly Overvalued.
Key valuation signals for FRA:GDUB:
5-Year Yield-on-Cost %: 2.93 (near median its 10-year median of 3.02)
GF Value™: €3.12 vs. price of €3.64 (16.7% above fair value)
Industry Position: 11.5% below the Steel median (#162 of 318)
No single metric tells the full story. See the FRA:GDUB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gerdau SA produces steel and steel products. The company operates in civil construction, agriculture, automotive, iron ore, exports, research and development, and home steel products sectors. It offers products such as nails, rebar, columns, billets, slabs, tribar tutors, mechanical construction bars, and reinforced steel locks. The company's geographical segment includes Brazil Segment; North America Segment; South America Segment as well as Special Steel Operations. It derives the majority of its revenue from the Brazil Operations segment, which includes the long, flat and special steel operations and the iron ore operation located in Brazil and joint ventures and associated companies located in Brazil.
73GF Score
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