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HDFC BankFRA:HDFA 70 5-Year Yield-on-Cost % is 1.82 as of Jul. 27, 2026, which is 194% above its 10-year median of 0.62. GuruFocus rates FRA:HDFA with a GF Score™ of 70/100 and a GF Value™ of €26.73 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,252 Banks companies, HDFC Bank ranks worse than 84.66% on this metric.
HDFC Bank's yield on cost for the quarter that ended in Mar. 2025 was 1.82.
The historical rank and industry rank for HDFC Bank's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:HDFA'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.39 Med: 0.62 Max: 1.82
Current: 1.82
During the past 13 years, HDFC Bank's highest Yield on Cost was 1.82. The lowest was 0.39. And the median was 0.62.
FRA:HDFA's 5-Year Yield-on-Cost % is ranked worse than 84.66% of 1252
companies
in the Banks industry
Industry Median: 3.875
vs FRA:HDFA: 1.82
HDFC Bank (FRA:HDFA) 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.
HDFC Bank 5-Year Yield-on-Cost % Related Terms
FRA:HDFA vs PNC: 5-Year Yield-on-Cost % Comparison
For the Banks - Regional subindustry, HDFC 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.
HDFC Bank 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, HDFC Bank's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where HDFC 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 HDFC Bank is calculated as
HDFC Bank (FRA:HDFA) has a 5-Year Yield-on-Cost % of 1.82 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 HDFC Bank and its competitors. This is 194% above median its historical median of 0.62. Over the past decade, HDFC Bank's 5-Year Yield-on-Cost % has ranged from 0.39 to 1.82. According to the industry distribution chart, HDFC Bank ranks #1060 out of 1252 companies in the Banks industry, placing it in the top 84.7%.
Is HDFC Bank's 5-Year Yield-on-Cost % too high?
HDFC Bank's current 5-Year Yield-on-Cost % of 1.82 is 194% above median its 10-year median of 0.62. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 1.82. The Banks industry median 5-Year Yield-on-Cost % is 3.88. HDFC Bank's value of 1.82 is 53% below this industry median. Based on the distribution chart, HDFC Bank ranks #1060 out of 1252 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, HDFC Bank has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Bank's 5-Year Yield-on-Cost % compare to PNC?
According to the Banks industry distribution chart, HDFC Bank ranks #1060 out of 1252 companies for 5-Year Yield-on-Cost %. This places HDFC Bank in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.88. HDFC Bank's value of 1.82 is 53% below this benchmark. Historically, HDFC Bank's own 5-Year Yield-on-Cost % has ranged from 0.39 to 1.82 over the past decade. While the company's 10-year median is 0.62 vs. the industry median of 3.88, HDFC Bank 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 Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.88, based on 1,252 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. HDFC Bank's current 5-Year Yield-on-Cost % of 1.82 is 53% 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 HDFC Bank and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Bank's current 5-Year Yield-on-Cost % is 1.82, which is 194% above median its own 10-year median of 0.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDFC Bank stock overvalued right now?
Based on GuruFocus' analysis, HDFC Bank (FRA:HDFA) is currently considered Modestly Undervalued. The stock's GF Value™ is €26.73, compared to a current price of €20.00 — trading 25.2% below its estimated fair value. The current 5-Year Yield-on-Cost % is 1.82, which is 194% above median its 10-year median of 0.62 and 53% below the Banks industry median of 3.88. HDFC Bank's overall GF Score™ is 70/100 with 3 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 HDFC Bank (FRA:HDFA), the current 5-Year Yield-on-Cost % is 1.82 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 HDFC Bank (FRA:HDFA) Overvalued in 2026?
Based on GuruFocus' analysis, HDFC Bank stock appears to be undervalued.
The current stock price of €20.00 is trading 25.2% below its estimated GF Value™ of €26.73.
GuruFocus considers HDFC Bank to be Modestly Undervalued.
Key valuation signals for FRA:HDFA:
5-Year Yield-on-Cost %: 1.82 (194% above median its 10-year median of 0.62)
GF Value™: €26.73 vs. price of €20.00 (25.2% below fair value)
Industry Position: 53% below the Banks median (#1060 of 1252)
No single metric tells the full story. See the FRA:HDFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HDFC Bank Ltd is an Indian bank. It operates in the following segments: Treasury, Retail banking, Wholesale banking, and Other banking business. The maximum revenue for the company is generated from its Retail banking segment, which serves retail customers through its branch network and other channels. This segment raises customer deposits and provides loans and other services to customers using different product groups. Its other operations include providing wholesale banking services to corporates, government entities, and other enterprises, generating income from its treasury operations, and performing para-banking activities such as offering credit cards, debit cards, etc. Geographically, the company generates a majority of its revenue from its operations in India.
70GF 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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