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HDFC Life Insurance CoNSE:HDFCLIFE 75 5-Year Yield-on-Cost % is 0.38 as of Aug. 29, 2026, which is 27% above its 10-year median of 0.30. GuruFocus rates NSE:HDFCLIFE with a GF Score™ of 75/100 and a GF Value™ of ₹752.05 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 422 Insurance companies, HDFC Life Insurance Co ranks worse than 96.45% on this metric.
HDFC Life Insurance Co's yield on cost for the quarter that ended in Jun. 2026 was 0.38.
The historical rank and industry rank for HDFC Life Insurance Co's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:HDFCLIFE'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.25 Med: 0.3 Max: 0.43
Current: 0.38
During the past 13 years, HDFC Life Insurance Co's highest Yield on Cost was 0.43. The lowest was 0.25. And the median was 0.30.
NSE:HDFCLIFE's 5-Year Yield-on-Cost % is ranked worse than 96.45% of 422
companies
in the Insurance industry
Industry Median: 3.865
vs NSE:HDFCLIFE: 0.38
HDFC Life Insurance Co (NSE:HDFCLIFE) 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.
HDFC Life Insurance Co 5-Year Yield-on-Cost % Related Terms
NSE:HDFCLIFE vs AFL, MET, PRU: 5-Year Yield-on-Cost % Comparison
For the Insurance - Life subindustry, HDFC Life Insurance Co'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.
HDFC Life Insurance Co 5-Year Yield-on-Cost % vs Insurance Industry
For the Insurance industry and Financial Services sector, HDFC Life Insurance Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where HDFC Life Insurance Co's 5-Year Yield-on-Cost % falls into.
HDFC Life Insurance Co 5-Year Yield-on-Cost % Calculation
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.
HDFC Life Insurance Co (NSE:HDFCLIFE) has a 5-Year Yield-on-Cost % of 0.38 as of Aug. 29, 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 HDFC Life Insurance Co and its competitors. This is 27% above median its historical median of 0.30. Over the past decade, HDFC Life Insurance Co's 5-Year Yield-on-Cost % has ranged from 0.25 to 0.43. According to the industry distribution chart, HDFC Life Insurance Co ranks #407 out of 422 companies in the Insurance industry, placing it in the top 96.4%.
Is HDFC Life Insurance Co's 5-Year Yield-on-Cost % too high?
HDFC Life Insurance Co's current 5-Year Yield-on-Cost % of 0.38 is 27% above median its 10-year median of 0.30. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 0.43. The Insurance industry median 5-Year Yield-on-Cost % is 3.87. HDFC Life Insurance Co's value of 0.38 is 90.2% below this industry median. Based on the distribution chart, HDFC Life Insurance Co ranks #407 out of 422 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, HDFC Life Insurance Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Life Insurance Co's 5-Year Yield-on-Cost % compare to AFL and MET?
According to the Insurance industry distribution chart, HDFC Life Insurance Co ranks #407 out of 422 companies for 5-Year Yield-on-Cost %. This places HDFC Life Insurance Co in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.87. HDFC Life Insurance Co's value of 0.38 is 90.2% below this benchmark. Historically, HDFC Life Insurance Co's own 5-Year Yield-on-Cost % has ranged from 0.25 to 0.43 over the past decade. While the company's 10-year median is 0.30 vs. the industry median of 3.87, HDFC Life Insurance Co 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 an Insurance company?
The median 5-Year Yield-on-Cost % among Insurance companies is 3.87, based on 422 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. HDFC Life Insurance Co's current 5-Year Yield-on-Cost % of 0.38 is 90.2% 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 HDFC Life Insurance Co and its competitors. For the Insurance industry, the median 5-Year Yield-on-Cost % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Life Insurance Co's current 5-Year Yield-on-Cost % is 0.38, which is 27% above median its own 10-year median of 0.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDFC Life Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, HDFC Life Insurance Co (NSE:HDFCLIFE) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹752.05, compared to a current price of ₹548.00 — trading 27.1% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.38, which is 27% above median its 10-year median of 0.30 and 90.2% below the Insurance industry median of 3.87. HDFC Life Insurance Co's overall GF Score™ is 75/100 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 HDFC Life Insurance Co (NSE:HDFCLIFE), the current 5-Year Yield-on-Cost % is 0.38 as of Aug. 29, 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 HDFC Life Insurance Co (NSE:HDFCLIFE) Overvalued in 2026?
Based on GuruFocus' analysis, HDFC Life Insurance Co stock appears to be undervalued.
The current stock price of ₹548.00 is trading 27.1% below its estimated GF Value™ of ₹752.05.
GuruFocus considers HDFC Life Insurance Co to be Modestly Undervalued.
Key valuation signals for NSE:HDFCLIFE:
5-Year Yield-on-Cost %: 0.38 (27% above median its 10-year median of 0.30)
GF Value™: ₹752.05 vs. price of ₹548.00 (27.1% below fair value)
Industry Position: 90.2% below the Insurance median (#407 of 422)
No single metric tells the full story. See the NSE:HDFCLIFE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HDFC Life Insurance Co Ltd is a long-term life insurance company. It offers individual and group insurance solutions such as Protection, Pension, Savings and Investment, and Health, along with Children's and Women's Plans. The company operates through segments namely, Participating Life (Individual & Group), Participating Pension (Individual & Group), Non-Participating Life (Individual & Group), Non-Participating Pension (Individual & Group), Non-Participating Life Group Variable, Non-Participating Pension Group Variable, Non-Participating - Annuity, Non Participating - Individual & Group Health, Unit Linked - Individual Life, Unit Linked - Individual Pension, Unit Linked - Group Life and Unit Linked - Group Pension.
75GF Score
Get the complete analysis for NSE:HDFCLIFE
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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