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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Indian Railway FinanceNSE:IRFC -1.11%70 5-Year Yield-on-Cost % is 6.28 as of Jul. 29, 2026, which is 13% above its 10-year median of 5.56. GuruFocus rates NSE:IRFC with a GF Score™ of 70/100 and a GF Value™ of ₹128.13 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 211 Credit Services companies, Indian Railway Finance ranks better than 65.4% on this metric.
Indian Railway Finance's yield on cost for the quarter that ended in Mar. 2026 was 6.28.
The historical rank and industry rank for Indian Railway Finance's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:IRFC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.82 Med: 5.56 Max: 22.33
Current: 6.28
During the past 9 years, Indian Railway Finance's highest Yield on Cost was 22.33. The lowest was 1.82. And the median was 5.56.
NSE:IRFC's 5-Year Yield-on-Cost % is ranked better than 65.4% of 211
companies
in the Credit Services industry
Industry Median: 4.52
vs NSE:IRFC: 6.28
Indian Railway Finance (NSE:IRFC) 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.
Indian Railway Finance 5-Year Yield-on-Cost % Related Terms
NSE:IRFC vs V, MA, AXP: 5-Year Yield-on-Cost % Comparison
For the Credit Services subindustry, Indian Railway Finance'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.
Indian Railway Finance 5-Year Yield-on-Cost % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance's 5-Year Yield-on-Cost % falls into.
Indian Railway Finance 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.
Indian Railway Finance (NSE:IRFC) has a 5-Year Yield-on-Cost % of 6.28 as of Jul. 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 Indian Railway Finance and its competitors. This is 13% above median its historical median of 5.56. Over the past decade, Indian Railway Finance's 5-Year Yield-on-Cost % has ranged from 1.82 to 22.33. According to the industry distribution chart, Indian Railway Finance ranks #73 out of 211 companies in the Credit Services industry, placing it in the top 34.6%.
Is Indian Railway Finance's 5-Year Yield-on-Cost % too high?
Indian Railway Finance's current 5-Year Yield-on-Cost % of 6.28 is 13% above median its 10-year median of 5.56. Over the past 10 years, this metric has ranged from a low of 1.82 to a high of 22.33. The Credit Services industry median 5-Year Yield-on-Cost % is 4.52. Indian Railway Finance's value of 6.28 is 38.9% above this industry median. Based on the distribution chart, Indian Railway Finance ranks #73 out of 211 companies in the Credit Services industry, which is above the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's 5-Year Yield-on-Cost % compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #73 out of 211 companies for 5-Year Yield-on-Cost %. This puts Indian Railway Finance in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 4.52. Indian Railway Finance's value of 6.28 is 38.9% above this benchmark. Historically, Indian Railway Finance's own 5-Year Yield-on-Cost % has ranged from 1.82 to 22.33 over the past decade. While the company's 10-year median is 5.56 vs. the industry median of 4.52, Indian Railway Finance 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 Credit Services company?
The median 5-Year Yield-on-Cost % among Credit Services companies is 4.52, based on 211 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. Indian Railway Finance's current 5-Year Yield-on-Cost % of 6.28 is 38.9% 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 Indian Railway Finance and its competitors. For the Credit Services industry, the median 5-Year Yield-on-Cost % is 4.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current 5-Year Yield-on-Cost % is 6.28, which is 13% above median its own 10-year median of 5.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Possible Value Trap. The stock's GF Value™ is ₹128.13, compared to a current price of ₹87.15 — trading 32% below its estimated fair value. The current 5-Year Yield-on-Cost % is 6.28, which is 13% above median its 10-year median of 5.56 and 38.9% above the Credit Services industry median of 4.52. Indian Railway Finance's overall GF Score™ is 70/100 with 9 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 Indian Railway Finance (NSE:IRFC), the current 5-Year Yield-on-Cost % is 6.28 as of Jul. 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 Indian Railway Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹87.15 is trading 32% below its estimated GF Value™ of ₹128.13.
GuruFocus considers Indian Railway Finance to be Possible Value Trap.
Key valuation signals for NSE:IRFC:
5-Year Yield-on-Cost %: 6.28 (13% above median its 10-year median of 5.56)
GF Value™: ₹128.13 vs. price of ₹87.15 (32% below fair value)
Industry Position: 38.9% above the Credit Services median (#73 of 211)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
70GF Score
Get the complete analysis for NSE:IRFC
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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