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Starwood Property TrustFRA:VSP -1.00%47 5-Year Yield-on-Cost % is 11.45 as of Jul. 15, 2026, which is 25% above its 10-year median of 9.14. GuruFocus rates FRA:VSP with a GF Score™ of 47/100 and a GF Value™ of €12.02 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 870 REITs companies, Starwood Property Trust ranks better than 71.72% on this metric.
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.
Starwood Property Trust 5-Year Yield-on-Cost % Related Terms
FRA:VSP vs RITM, BXMT, DX: 5-Year Yield-on-Cost % Comparison
For the REIT - Mortgage subindustry, Starwood Property Trust'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.
Starwood Property Trust 5-Year Yield-on-Cost % vs REITs Industry
For the REITs industry and Real Estate sector, Starwood Property Trust's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Starwood Property Trust'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.
Starwood Property Trust (FRA:VSP) has a 5-Year Yield-on-Cost % of 11.45 as of Jul. 15, 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 Starwood Property Trust and its competitors. This is 25% above median its historical median of 9.14. Over the past decade, Starwood Property Trust's 5-Year Yield-on-Cost % has ranged from 7.13 to 20.69. According to the industry distribution chart, Starwood Property Trust ranks #246 out of 870 companies in the REITs industry, placing it in the top 28.3%.
Is Starwood Property Trust's 5-Year Yield-on-Cost % too high?
Starwood Property Trust's current 5-Year Yield-on-Cost % of 11.45 is 25% above median its 10-year median of 9.14. Over the past 10 years, this metric has ranged from a low of 7.13 to a high of 20.69. The REITs industry median 5-Year Yield-on-Cost % is 7.27. Starwood Property Trust's value of 11.45 is 57.5% above this industry median. Based on the distribution chart, Starwood Property Trust ranks #246 out of 870 companies in the REITs industry, which is above the industry midpoint. Overall, Starwood Property Trust has a GF Score™ of 47/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Starwood Property Trust's 5-Year Yield-on-Cost % compare to RITM and BXMT?
According to the REITs industry distribution chart, Starwood Property Trust ranks #246 out of 870 companies for 5-Year Yield-on-Cost %. This puts Starwood Property Trust in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 7.27. Starwood Property Trust's value of 11.45 is 57.5% above this benchmark. Historically, Starwood Property Trust's own 5-Year Yield-on-Cost % has ranged from 7.13 to 20.69 over the past decade. While the company's 10-year median is 9.14 vs. the industry median of 7.27, Starwood Property Trust 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 REITs company?
The median 5-Year Yield-on-Cost % among REITs companies is 7.27, based on 870 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. Starwood Property Trust's current 5-Year Yield-on-Cost % of 11.45 is 57.5% 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 Starwood Property Trust and its competitors. For the REITs industry, the median 5-Year Yield-on-Cost % is 7.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starwood Property Trust's current 5-Year Yield-on-Cost % is 11.45, which is 25% above median its own 10-year median of 9.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Starwood Property Trust stock overvalued right now?
Based on GuruFocus' analysis, Starwood Property Trust (FRA:VSP) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.02, compared to a current price of €14.30 — trading 19% above its estimated fair value. The current 5-Year Yield-on-Cost % is 11.45, which is 25% above median its 10-year median of 9.14 and 57.5% above the REITs industry median of 7.27. Starwood Property Trust's overall GF Score™ is 47/100 with 4 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 Starwood Property Trust (FRA:VSP), the current 5-Year Yield-on-Cost % is 11.45 as of Jul. 15, 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 Starwood Property Trust (FRA:VSP) Overvalued in 2026?
Based on GuruFocus' analysis, Starwood Property Trust stock appears to be overvalued.
The current stock price of €14.30 is trading 19% above its estimated GF Value™ of €12.02.
GuruFocus considers Starwood Property Trust to be Modestly Overvalued.
Key valuation signals for FRA:VSP:
5-Year Yield-on-Cost %: 11.45 (25% above median its 10-year median of 9.14)
GF Value™: €12.02 vs. price of €14.30 (19% above fair value)
Industry Position: 57.5% above the REITs median (#246 of 870)
No single metric tells the full story. See the FRA:VSP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Starwood Property Trust Inc is a real estate investment trust principally engaged in originating, acquiring, and managing commercial mortgage loans, commercial mortgage-backed securities, and other real estate investments in the U.S., Australia, and Europe. The company has four reportable business segments: Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. The majority of its revenue is generated from the Commercial and Residential Lending segment, which engages mainly in originating, acquiring, financing, and managing commercial first mortgages, non-agency residential mortgages (residential loans), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), and other real estate and related debt investments.
47GF Score
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