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CiplaNSE:CIPLA -0.63%94 5-Year Yield-on-Cost % is 0.90 as of Jul. 22, 2026, which is 64% above its 10-year median of 0.55. GuruFocus rates NSE:CIPLA with a GF Score™ of 94/100 and a GF Value™ of ₹1,581.02 (Fairly Valued). The stock has 3 warning signs investors should review. Among 513 Drug Manufacturers companies, Cipla ranks worse than 72.71% on this metric.
Cipla's yield on cost for the quarter that ended in Mar. 2026 was 0.90.
The historical rank and industry rank for Cipla's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:CIPLA'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.3 Med: 0.55 Max: 1.75
Current: 0.9
During the past 13 years, Cipla's highest Yield on Cost was 1.75. The lowest was 0.30. And the median was 0.55.
NSE:CIPLA's 5-Year Yield-on-Cost % is ranked worse than 72.71% of 513
companies
in the Drug Manufacturers industry
Industry Median: 2.29
vs NSE:CIPLA: 0.90
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.
Cipla 5-Year Yield-on-Cost % Related Terms
NSE:CIPLA vs ZTS, UTHR: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Cipla'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.
Cipla 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Cipla's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Cipla'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 Cipla is calculated as
Cipla (NSE:CIPLA) has a 5-Year Yield-on-Cost % of 0.90 as of Jul. 22, 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 Cipla and its competitors. This is 64% above median its historical median of 0.55. Over the past decade, Cipla's 5-Year Yield-on-Cost % has ranged from 0.30 to 1.75. According to the industry distribution chart, Cipla ranks #373 out of 513 companies in the Drug Manufacturers industry, placing it in the top 72.7%.
Is Cipla's 5-Year Yield-on-Cost % too high?
Cipla's current 5-Year Yield-on-Cost % of 0.90 is 64% above median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 1.75. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.29. Cipla's value of 0.90 is 60.7% below this industry median. Based on the distribution chart, Cipla ranks #373 out of 513 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Cipla has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cipla's 5-Year Yield-on-Cost % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Cipla ranks #373 out of 513 companies for 5-Year Yield-on-Cost %. This places Cipla in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 2.29. Cipla's value of 0.90 is 60.7% below this benchmark. Historically, Cipla's own 5-Year Yield-on-Cost % has ranged from 0.30 to 1.75 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 2.29, Cipla 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 Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.29, based on 513 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. Cipla's current 5-Year Yield-on-Cost % of 0.90 is 60.7% 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 Cipla and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cipla's current 5-Year Yield-on-Cost % is 0.90, which is 64% above median its own 10-year median of 0.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cipla stock overvalued right now?
Based on GuruFocus' analysis, Cipla (NSE:CIPLA) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,581.02, compared to a current price of ₹1,432.50 — trading 9.4% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.90, which is 64% above median its 10-year median of 0.55 and 60.7% below the Drug Manufacturers industry median of 2.29. Cipla's overall GF Score™ is 94/100 with 3 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 Cipla (NSE:CIPLA), the current 5-Year Yield-on-Cost % is 0.90 as of Jul. 22, 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 Cipla (NSE:CIPLA) Overvalued in 2026?
Based on GuruFocus' analysis, Cipla stock appears to be undervalued.
The current stock price of ₹1,432.50 is trading 9.4% below its estimated GF Value™ of ₹1,581.02.
GuruFocus considers Cipla to be Fairly Valued.
Key valuation signals for NSE:CIPLA:
5-Year Yield-on-Cost %: 0.90 (64% above median its 10-year median of 0.55)
GF Value™: ₹1,581.02 vs. price of ₹1,432.50 (9.4% below fair value)
Industry Position: 60.7% below the Drug Manufacturers median (#373 of 513)
No single metric tells the full story. See the NSE:CIPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cipla Ltd is a drug manufacturing company that focuses on a variety of pharmaceutical products. The company's product portfolio spans complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, CNS, and various other key therapeutic segments. The bulk of its sales are generated in India, although it maintains a large world-wide presence. Cipla's growth plan focuses on new product launches. It has two segments Pharmaceuticals and new ventures. It derives maximum revenue from Pharmaceuticals Segment.
94GF Score
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