ERG SpAMIL:ERG -1.45%76 5-Year Yield-on-Cost % is 6.00 as of Jul. 09, 2026, which is 6% above its 10-year median of 5.65. GuruFocus rates MIL:ERG with a GF Score™ of 76/100 and a GF Value™ of €24.44 (Fairly Valued). The stock has 7 warning signs investors should review. Among 237 Utilities - Independent Power Producers companies, ERG SpA ranks better than 72.15% on this metric.
ERG SpA's yield on cost for the quarter that ended in Mar. 2026 was 6.00.
The historical rank and industry rank for ERG SpA's 5-Year Yield-on-Cost % or its related term are showing as below:
MIL:ERG'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.11 Med: 5.65 Max: 10.13
Current: 6
During the past 13 years, ERG SpA's highest Yield on Cost was 10.13. The lowest was 3.11. And the median was 5.65.
MIL:ERG's 5-Year Yield-on-Cost % is ranked better than 72.15% of 237
companies
in the Utilities - Independent Power Producers industry
Industry Median: 3.71
vs MIL:ERG: 6.00
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.
For the Utilities - Renewable subindustry, ERG SpA'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.
ERG SpA 5-Year Yield-on-Cost % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, ERG SpA's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where ERG SpA'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 ERG SpA is calculated as
ERG SpA (MIL:ERG) has a 5-Year Yield-on-Cost % of 6.00 as of Jul. 09, 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 ERG SpA and its competitors. This is near median its historical median of 5.65. Over the past decade, ERG SpA's 5-Year Yield-on-Cost % has ranged from 3.11 to 10.13. According to the industry distribution chart, ERG SpA ranks #66 out of 237 companies in the Utilities - Independent Power Producers industry, placing it in the top 27.8%.
Is ERG SpA's 5-Year Yield-on-Cost % too high?
ERG SpA's current 5-Year Yield-on-Cost % of 6.00 is near median its 10-year median of 5.65. Over the past 10 years, this metric has ranged from a low of 3.11 to a high of 10.13. The Utilities - Independent Power Producers industry median 5-Year Yield-on-Cost % is 3.71. ERG SpA's value of 6.00 is 61.7% above this industry median. Based on the distribution chart, ERG SpA ranks #66 out of 237 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, ERG SpA has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ERG SpA's 5-Year Yield-on-Cost % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, ERG SpA ranks #66 out of 237 companies for 5-Year Yield-on-Cost %. This puts ERG SpA in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.71. ERG SpA's value of 6.00 is 61.7% above this benchmark. Historically, ERG SpA's own 5-Year Yield-on-Cost % has ranged from 3.11 to 10.13 over the past decade. While the company's 10-year median is 5.65 vs. the industry median of 3.71, ERG SpA 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 an Utilities - Independent Power Producers company?
The median 5-Year Yield-on-Cost % among Utilities - Independent Power Producers companies is 3.71, based on 237 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. ERG SpA's current 5-Year Yield-on-Cost % of 6.00 is 61.7% 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 ERG SpA and its competitors. For the Utilities - Independent Power Producers industry, the median 5-Year Yield-on-Cost % is 3.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ERG SpA's current 5-Year Yield-on-Cost % is 6.00, which is near median its own 10-year median of 5.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ERG SpA stock overvalued right now?
Based on GuruFocus' analysis, ERG SpA (MIL:ERG) is currently considered Fairly Valued. The stock's GF Value™ is €24.44, compared to a current price of €23.16 — trading 5.2% below its estimated fair value. The current 5-Year Yield-on-Cost % is 6.00, which is near median its 10-year median of 5.65 and 61.7% above the Utilities - Independent Power Producers industry median of 3.71. ERG SpA's overall GF Score™ is 76/100 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 ERG SpA (MIL:ERG), the current 5-Year Yield-on-Cost % is 6.00 as of Jul. 09, 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 ERG SpA (MIL:ERG) Overvalued in 2026?
Based on GuruFocus' analysis, ERG SpA stock appears to be undervalued.
The current stock price of €23.16 is trading 5.2% below its estimated GF Value™ of €24.44.
GuruFocus considers ERG SpA to be Fairly Valued.
Key valuation signals for MIL:ERG:
5-Year Yield-on-Cost %: 6.00 (near median its 10-year median of 5.65)
GF Value™: €24.44 vs. price of €23.16 (5.2% below fair value)
Industry Position: 61.7% above the Utilities - Independent Power Producers median (#66 of 237)
No single metric tells the full story. See the MIL:ERG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ERG SpA produces electricity from clean, renewable, and sustainable sources. Its energy comes from the combination of natural resources such as wind and sun. The company produces wind power, and electricity as a hydroelectric operator to markets across Europe. Electricity is also generated from natural gas operations located in Italy. ERG's wind power production is handled by subsidiary ENG Renew which focuses on developing, building, and operating wind assets. Hydropower and natural gas operations are split off into ERG Power Generation. The company's hydro assets include plants, dams, reservoirs, and a pumping station. Electricity from the plant is either fed into Italy's national grid or used to power other industrial plants.
76GF Score
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