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HCL TechnologiesNSE:HCLTECH -1.11%83 5-Year Yield-on-Cost % is 16.26 as of Aug. 06, 2026, which is 90% above its 10-year median of 8.54. GuruFocus rates NSE:HCLTECH with a GF Score™ of 83/100 and a GF Value™ of ₹1,815.55 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,008 Software companies, HCL Technologies ranks better than 94.64% on this metric.
HCL Technologies's yield on cost for the quarter that ended in Jun. 2026 was 16.26.
The historical rank and industry rank for HCL Technologies's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:HCLTECH'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.38 Med: 8.54 Max: 19.57
Current: 16.26
During the past 13 years, HCL Technologies's highest Yield on Cost was 19.57. The lowest was 2.38. And the median was 8.54.
NSE:HCLTECH's 5-Year Yield-on-Cost % is ranked better than 94.64% of 1008
companies
in the Software industry
Industry Median: 3.085
vs NSE:HCLTECH: 16.26
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.
HCL Technologies 5-Year Yield-on-Cost % Related Terms
NSE:HCLTECH vs IBM, ACN, FISV: 5-Year Yield-on-Cost % Comparison
For the Information Technology Services subindustry, HCL Technologies'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.
HCL Technologies 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, HCL Technologies's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where HCL Technologies'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.
HCL Technologies (NSE:HCLTECH) has a 5-Year Yield-on-Cost % of 16.26 as of Aug. 06, 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 HCL Technologies and its competitors. This is 90% above median its historical median of 8.54. Over the past decade, HCL Technologies' 5-Year Yield-on-Cost % has ranged from 2.38 to 19.57. According to the industry distribution chart, HCL Technologies ranks #54 out of 1008 companies in the Software industry, placing it in the top 5.4%.
Is HCL Technologies' 5-Year Yield-on-Cost % too high?
HCL Technologies' current 5-Year Yield-on-Cost % of 16.26 is 90% above median its 10-year median of 8.54. Over the past 10 years, this metric has ranged from a low of 2.38 to a high of 19.57. The Software industry median 5-Year Yield-on-Cost % is 3.09. HCL Technologies' value of 16.26 is 427.1% above this industry median. Based on the distribution chart, HCL Technologies ranks #54 out of 1008 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, HCL Technologies has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HCL Technologies' 5-Year Yield-on-Cost % compare to IBM and ACN?
According to the Software industry distribution chart, HCL Technologies ranks #54 out of 1008 companies for 5-Year Yield-on-Cost %. This places HCL Technologies in the top 5% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.09. HCL Technologies' value of 16.26 is 427.1% above this benchmark. Historically, HCL Technologies' own 5-Year Yield-on-Cost % has ranged from 2.38 to 19.57 over the past decade. While the company's 10-year median is 8.54 vs. the industry median of 3.09, HCL Technologies 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 Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.09, based on 1,008 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. HCL Technologies's current 5-Year Yield-on-Cost % of 16.26 is 427.1% 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 HCL Technologies and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HCL Technologies's current 5-Year Yield-on-Cost % is 16.26, which is 90% above median its own 10-year median of 8.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HCL Technologies stock overvalued right now?
Based on GuruFocus' analysis, HCL Technologies (NSE:HCLTECH) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,815.55, compared to a current price of ₹1,335.00 — trading 26.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 16.26, which is 90% above median its 10-year median of 8.54 and 427.1% above the Software industry median of 3.09. HCL Technologies' overall GF Score™ is 83/100 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 HCL Technologies (NSE:HCLTECH), the current 5-Year Yield-on-Cost % is 16.26 as of Aug. 06, 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 HCL Technologies (NSE:HCLTECH) Overvalued in 2026?
Based on GuruFocus' analysis, HCL Technologies stock appears to be undervalued.
The current stock price of ₹1,335.00 is trading 26.5% below its estimated GF Value™ of ₹1,815.55.
GuruFocus considers HCL Technologies to be Modestly Undervalued.
Key valuation signals for NSE:HCLTECH:
5-Year Yield-on-Cost %: 16.26 (90% above median its 10-year median of 8.54)
GF Value™: ₹1,815.55 vs. price of ₹1,335.00 (26.5% below fair value)
Industry Position: 427.1% above the Software median (#54 of 1008)
No single metric tells the full story. See the NSE:HCLTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HCL Technologies Ltd provides enterprises with IT solutions. It focuses on offering Digital, Internet of Things, Cloud, Automation, Cybersecurity, Infrastructure Management, and Engineering services to solve business problems for clients. It offers solutions to a variety of industries, including Financial Services, Public Services, Consumer Services, Healthcare, and Manufacturing. It operates in three segments: IT and Business Services, Engineering and R&D Services, and HCL Software. The firm emphasizes consultation services for firms, intending to offer them digital and design solutions. The majority of the firm's revenue comes from the IT and Business Services segment. Geographically, it derives maximum revenue from the USA, and the rest from Europe, India, and the Rest of the world.
83GF 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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