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Habib BankKAR:HBL +1.11%55 5-Year Yield-on-Cost % is 36.57 as of Aug. 07, 2026, which is 16% above its 10-year median of 31.43. GuruFocus rates KAR:HBL with a GF Score™ of 55/100 and a GF Value™ of ₨175.38 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,252 Banks companies, Habib Bank ranks better than 98.08% on this metric.
Habib Bank's yield on cost for the quarter that ended in Mar. 2026 was 36.57.
The historical rank and industry rank for Habib Bank's 5-Year Yield-on-Cost % or its related term are showing as below:
KAR:HBL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 6.08 Med: 31.43 Max: 68.38
Current: 36.57
During the past 13 years, Habib Bank's highest Yield on Cost was 68.38. The lowest was 6.08. And the median was 31.43.
KAR:HBL's 5-Year Yield-on-Cost % is ranked better than 98.08% of 1252
companies
in the Banks industry
Industry Median: 3.805
vs KAR:HBL: 36.57
Habib Bank (KAR:HBL) 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.
Habib Bank 5-Year Yield-on-Cost % Related Terms
Habib Bank 5-Year Yield-on-Cost % Competitor Comparison
For the Banks - Regional subindustry, Habib 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.
Habib Bank 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Habib Bank's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Habib 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 Habib Bank is calculated as
Habib Bank (KAR:HBL) has a 5-Year Yield-on-Cost % of 36.57 as of Aug. 07, 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 Habib Bank and its competitors. This is 16% above median its historical median of 31.43. Over the past decade, Habib Bank's 5-Year Yield-on-Cost % has ranged from 6.08 to 68.38. According to the industry distribution chart, Habib Bank ranks #24 out of 1252 companies in the Banks industry, placing it in the top 1.9%.
Is Habib Bank's 5-Year Yield-on-Cost % too high?
Habib Bank's current 5-Year Yield-on-Cost % of 36.57 is 16% above median its 10-year median of 31.43. Over the past 10 years, this metric has ranged from a low of 6.08 to a high of 68.38. The Banks industry median 5-Year Yield-on-Cost % is 3.81. Habib Bank's value of 36.57 is 861.1% above this industry median. Based on the distribution chart, Habib Bank ranks #24 out of 1252 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Habib Bank has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Habib Bank's 5-Year Yield-on-Cost % compare to competitors?
According to the Banks industry distribution chart, Habib Bank ranks #24 out of 1252 companies for 5-Year Yield-on-Cost %. This places Habib Bank in the top 2% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.81. Habib Bank's value of 36.57 is 861.1% above this benchmark. Historically, Habib Bank's own 5-Year Yield-on-Cost % has ranged from 6.08 to 68.38 over the past decade. While the company's 10-year median is 31.43 vs. the industry median of 3.81, Habib Bank 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 Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.81, 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. Habib Bank's current 5-Year Yield-on-Cost % of 36.57 is 861.1% 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 Habib Bank and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Habib Bank's current 5-Year Yield-on-Cost % is 36.57, which is 16% above median its own 10-year median of 31.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Habib Bank stock overvalued right now?
Based on GuruFocus' analysis, Habib Bank (KAR:HBL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨175.38, compared to a current price of ₨325.60 — trading 85.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 36.57, which is 16% above median its 10-year median of 31.43 and 861.1% above the Banks industry median of 3.81. Habib Bank's overall GF Score™ is 55/100 with 2 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 Habib Bank (KAR:HBL), the current 5-Year Yield-on-Cost % is 36.57 as of Aug. 07, 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 Habib Bank (KAR:HBL) Overvalued in 2026?
Based on GuruFocus' analysis, Habib Bank stock appears to be overvalued.
The current stock price of ₨325.60 is trading 85.7% above its estimated GF Value™ of ₨175.38.
GuruFocus considers Habib Bank to be Significantly Overvalued.
Key valuation signals for KAR:HBL:
5-Year Yield-on-Cost %: 36.57 (16% above median its 10-year median of 31.43)
GF Value™: ₨175.38 vs. price of ₨325.60 (85.7% above fair value)
Industry Position: 861.1% above the Banks median (#24 of 1252)
No single metric tells the full story. See the KAR:HBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Habib Bank Ltd is engaged in commercial banking related services in Pakistan and overseas. The operating business segments are Retail banking; Consumer, SME and agriculture lending; Corporate, commercial and investment banking; International; Financial Institutions; Treasury; Branchless Banking; Asset Management, Microfinance; and Head Office / Others. The company operates in Pakistan, the Middle East & Africa, Asia, and Europe. The Retail banking segment derives the maximum revenue for the company.
55GF Score
Get the complete analysis for KAR:HBL
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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