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Novartis AGFRA:NOT +1.12%81 5-Year Yield-on-Cost % is 3.55 as of Jul. 14, 2026, which is 20% below its 10-year median of 4.45. GuruFocus rates FRA:NOT with a GF Score™ of 81/100 and a GF Value™ of €113.05 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 516 Drug Manufacturers companies, Novartis AG ranks better than 61.82% on this metric.
Novartis AG's yield on cost for the quarter that ended in Mar. 2026 was 3.55.
The historical rank and industry rank for Novartis AG's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:NOT'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.12 Med: 4.45 Max: 5.34
Current: 3.55
During the past 13 years, Novartis AG's highest Yield on Cost was 5.34. The lowest was 3.12. And the median was 4.45.
FRA:NOT's 5-Year Yield-on-Cost % is ranked better than 61.82% of 516
companies
in the Drug Manufacturers industry
Industry Median: 2.205
vs FRA:NOT: 3.55
Novartis AG (FRA:NOT) 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.
Novartis AG 5-Year Yield-on-Cost % Related Terms
FRA:NOT vs LLY, JNJ, ABBV: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - General subindustry, Novartis AG'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.
Novartis AG 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Novartis AG'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 Novartis AG is calculated as
Novartis AG (FRA:NOT) has a 5-Year Yield-on-Cost % of 3.55 as of Jul. 14, 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 Novartis AG and its competitors. This is 20% below median its historical median of 4.45. Over the past decade, Novartis AG's 5-Year Yield-on-Cost % has ranged from 3.12 to 5.34. According to the industry distribution chart, Novartis AG ranks #197 out of 516 companies in the Drug Manufacturers industry, placing it in the top 38.2%.
Is Novartis AG's 5-Year Yield-on-Cost % too high?
Novartis AG's current 5-Year Yield-on-Cost % of 3.55 is 20% below median its 10-year median of 4.45. Over the past 10 years, this metric has ranged from a low of 3.12 to a high of 5.34. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.21. Novartis AG's value of 3.55 is 61% above this industry median. Based on the distribution chart, Novartis AG ranks #197 out of 516 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Novartis AG has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's 5-Year Yield-on-Cost % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #197 out of 516 companies for 5-Year Yield-on-Cost %. This puts Novartis AG in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 2.21. Novartis AG's value of 3.55 is 61% above this benchmark. Historically, Novartis AG's own 5-Year Yield-on-Cost % has ranged from 3.12 to 5.34 over the past decade. While the company's 10-year median is 4.45 vs. the industry median of 2.21, Novartis AG 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 Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.21, based on 516 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. Novartis AG's current 5-Year Yield-on-Cost % of 3.55 is 61% 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 Novartis AG and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current 5-Year Yield-on-Cost % is 3.55, which is 20% below median its own 10-year median of 4.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis AG stock overvalued right now?
Based on GuruFocus' analysis, Novartis AG (FRA:NOT) is currently considered Modestly Overvalued. The stock's GF Value™ is €113.05, compared to a current price of €135.38 — trading 19.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.55, which is 20% below median its 10-year median of 4.45 and 61% above the Drug Manufacturers industry median of 2.21. Novartis AG's overall GF Score™ is 81/100 with 7 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 Novartis AG (FRA:NOT), the current 5-Year Yield-on-Cost % is 3.55 as of Jul. 14, 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 Novartis AG (FRA:NOT) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €135.38 is trading 19.8% above its estimated GF Value™ of €113.05.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
5-Year Yield-on-Cost %: 3.55 (20% below median its 10-year median of 4.45)
GF Value™: €113.05 vs. price of €135.38 (19.8% above fair value)
Industry Position: 61% above the Drug Manufacturers median (#197 of 516)
No single metric tells the full story. See the FRA:NOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novartis develops and manufactures innovative drugs. Key areas of drug development are oncology, immunology, neuroscience, respiratory, and cardiovascular, renal, and metabolic. It also has an established medicines business, which includes off-patent franchises. The company sells its products globally, with the United States constituting close to one-third of total revenue.
81GF Score
Get the complete analysis for FRA:NOT
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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