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Hindustan AeronauticsNSE:HAL +1.42%93 5-Year Yield-on-Cost % is 3.48 as of Aug. 01, 2026, which is 45% below its 10-year median of 6.34. GuruFocus rates NSE:HAL with a GF Score™ of 93/100 and a GF Value™ of ₹4,759.36 (Fairly Valued). The stock has 4 warning signs investors should review. Among 171 Aerospace & Defense companies, Hindustan Aeronautics ranks better than 83.04% on this metric.
Hindustan Aeronautics's yield on cost for the quarter that ended in Mar. 2026 was 3.48.
The historical rank and industry rank for Hindustan Aeronautics's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:HAL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.69 Med: 6.34 Max: 21.14
Current: 3.48
During the past 13 years, Hindustan Aeronautics's highest Yield on Cost was 21.14. The lowest was 1.69. And the median was 6.34.
NSE:HAL's 5-Year Yield-on-Cost % is ranked better than 83.04% of 171
companies
in the Aerospace & Defense industry
Industry Median: 1.03
vs NSE:HAL: 3.48
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.
Hindustan Aeronautics 5-Year Yield-on-Cost % Related Terms
NSE:HAL vs SPCX, GE, RTX: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, Hindustan Aeronautics'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.
Hindustan Aeronautics 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Hindustan Aeronautics's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Hindustan Aeronautics'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.
Hindustan Aeronautics (NSE:HAL) has a 5-Year Yield-on-Cost % of 3.48 as of Aug. 01, 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 Hindustan Aeronautics and its competitors. This is 45% below median its historical median of 6.34. Over the past decade, Hindustan Aeronautics' 5-Year Yield-on-Cost % has ranged from 1.69 to 21.14. According to the industry distribution chart, Hindustan Aeronautics ranks #29 out of 171 companies in the Aerospace & Defense industry, placing it in the top 17%.
Is Hindustan Aeronautics' 5-Year Yield-on-Cost % too high?
Hindustan Aeronautics' current 5-Year Yield-on-Cost % of 3.48 is 45% below median its 10-year median of 6.34. Over the past 10 years, this metric has ranged from a low of 1.69 to a high of 21.14. The Aerospace & Defense industry median 5-Year Yield-on-Cost % is 1.03. Hindustan Aeronautics' value of 3.48 is 237.9% above this industry median. Based on the distribution chart, Hindustan Aeronautics ranks #29 out of 171 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Hindustan Aeronautics has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Aeronautics' 5-Year Yield-on-Cost % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Hindustan Aeronautics ranks #29 out of 171 companies for 5-Year Yield-on-Cost %. This places Hindustan Aeronautics in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 1.03. Hindustan Aeronautics' value of 3.48 is 237.9% above this benchmark. Historically, Hindustan Aeronautics' own 5-Year Yield-on-Cost % has ranged from 1.69 to 21.14 over the past decade. While the company's 10-year median is 6.34 vs. the industry median of 1.03, Hindustan Aeronautics 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 Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.03, based on 171 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. Hindustan Aeronautics's current 5-Year Yield-on-Cost % of 3.48 is 237.9% 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 Hindustan Aeronautics and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Aeronautics's current 5-Year Yield-on-Cost % is 3.48, which is 45% below median its own 10-year median of 6.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Aeronautics stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Aeronautics (NSE:HAL) is currently considered Fairly Valued. The stock's GF Value™ is ₹4,759.36, compared to a current price of ₹4,646.50 — trading 2.4% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.48, which is 45% below median its 10-year median of 6.34 and 237.9% above the Aerospace & Defense industry median of 1.03. Hindustan Aeronautics' overall GF Score™ is 93/100 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 Hindustan Aeronautics (NSE:HAL), the current 5-Year Yield-on-Cost % is 3.48 as of Aug. 01, 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 Hindustan Aeronautics (NSE:HAL) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Aeronautics stock appears to be undervalued.
The current stock price of ₹4,646.50 is trading 2.4% below its estimated GF Value™ of ₹4,759.36.
GuruFocus considers Hindustan Aeronautics to be Fairly Valued.
Key valuation signals for NSE:HAL:
5-Year Yield-on-Cost %: 3.48 (45% below median its 10-year median of 6.34)
GF Value™: ₹4,759.36 vs. price of ₹4,646.50 (2.4% below fair value)
Industry Position: 237.9% above the Aerospace & Defense median (#29 of 171)
No single metric tells the full story. See the NSE:HAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Aeronautics Ltd operates in the aerospace and defense sector. The company is engaged in the design, manufacturing, and development of products like aircraft, helicopters, systems and accessories, power plants, avionics, materials like castings, rolled rings, rubber products, and aerospace which include structures, tanks, and cryogenic engines. Geographically the company derives revenue from India and other countries, of which a majority of revenue is generated from India.
93GF 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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