SmartgroupFRA:SW8 +1.99%89 5-Year Yield-on-Cost % is 3.11 as of Jul. 04, 2026, which is 24% below its 10-year median of 4.11. GuruFocus rates FRA:SW8 with a GF Score™ of 89/100 and a GF Value™ of €5.87. The stock has 6 warning signs investors should review. Among 601 Business Services companies, Smartgroup ranks worse than 60.23% on this metric.
Smartgroup's yield on cost for the quarter that ended in Dec. 2025 was 3.11.
The historical rank and industry rank for Smartgroup's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:SW8'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.65 Med: 4.11 Max: 8.71
Current: 3.11
During the past 12 years, Smartgroup's highest Yield on Cost was 8.71. The lowest was 1.65. And the median was 4.11.
FRA:SW8's 5-Year Yield-on-Cost % is ranked worse than 60.23% of 601
companies
in the Business Services industry
Industry Median: 4.18
vs FRA:SW8: 3.11
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.
Smartgroup 5-Year Yield-on-Cost % Related Terms
FRA:SW8 vs CTAS, CPRT, ULS: 5-Year Yield-on-Cost % Comparison
For the Specialty Business Services subindustry, Smartgroup'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.
Smartgroup 5-Year Yield-on-Cost % vs Business Services Industry
For the Business Services industry and Industrials sector, Smartgroup's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Smartgroup'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 Smartgroup is calculated as
Smartgroup (FRA:SW8) has a 5-Year Yield-on-Cost % of 3.11 as of Jul. 04, 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 Smartgroup and its competitors. This is 24% below median its historical median of 4.11. Over the past decade, Smartgroup's 5-Year Yield-on-Cost % has ranged from 1.65 to 8.71. According to the industry distribution chart, Smartgroup ranks #362 out of 601 companies in the Business Services industry, placing it in the top 60.2%.
Is Smartgroup's 5-Year Yield-on-Cost % too high?
Smartgroup's current 5-Year Yield-on-Cost % of 3.11 is 24% below median its 10-year median of 4.11. Over the past 10 years, this metric has ranged from a low of 1.65 to a high of 8.71. The Business Services industry median 5-Year Yield-on-Cost % is 4.18. Smartgroup's value of 3.11 is 25.6% below this industry median. Based on the distribution chart, Smartgroup ranks #362 out of 601 companies in the Business Services industry, which is below the industry midpoint. Overall, Smartgroup has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Smartgroup's 5-Year Yield-on-Cost % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Smartgroup ranks #362 out of 601 companies for 5-Year Yield-on-Cost %. This places Smartgroup in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.18. Smartgroup's value of 3.11 is 25.6% below this benchmark. Historically, Smartgroup's own 5-Year Yield-on-Cost % has ranged from 1.65 to 8.71 over the past decade. While the company's 10-year median is 4.11 vs. the industry median of 4.18, Smartgroup 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 Business Services company?
The median 5-Year Yield-on-Cost % among Business Services companies is 4.18, based on 601 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. Smartgroup's current 5-Year Yield-on-Cost % of 3.11 is 25.6% 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 Smartgroup and its competitors. For the Business Services industry, the median 5-Year Yield-on-Cost % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smartgroup's current 5-Year Yield-on-Cost % is 3.11, which is 24% below median its own 10-year median of 4.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smartgroup stock overvalued right now?
Smartgroup (FRA:SW8) has a current 5-Year Yield-on-Cost % of 3.11. The stock's GF Value™ is €5.87, compared to a current price of €7.70 — trading 31.2% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.11, which is 24% below median its 10-year median of 4.11 and 25.6% below the Business Services industry median of 4.18. Smartgroup's overall GF Score™ is 89/100 with 6 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 Smartgroup (FRA:SW8), the current 5-Year Yield-on-Cost % is 3.11 as of Jul. 04, 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 Smartgroup (FRA:SW8) Overvalued in 2026?
Based on GuruFocus' analysis, Smartgroup stock appears to be overvalued.
The current stock price of €7.70 is trading 31.2% above its estimated GF Value™ of €5.87.
Key valuation signals for FRA:SW8:
5-Year Yield-on-Cost %: 3.11 (24% below median its 10-year median of 4.11)
GF Value™: €5.87 vs. price of €7.70 (31.2% above fair value)
Industry Position: 25.6% below the Business Services median (#362 of 601)
No single metric tells the full story. See the FRA:SW8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smartgroup Corporation is an Australia-based company that provides specialist employee management services. Its services include salary packaging, novated leasing, vehicle fleet management, payroll administration, employee share plan administration and workforce optimization. The operating segments of the company are: outsourced administration, or OA, and vehicle services, or VS. Most of the group's revenue is generated from the OA segment which provides outsourced salary packaging services, novated leasing, share plan administration and outsourced payroll services. The VS segment provides end-to-end vehicle fleet management services.
89GF 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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