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ITCNSE:ITC +0.85%81 5-Year Yield-on-Cost % is 5.52 as of Jul. 27, 2026, which is 54% above its 10-year median of 3.58. GuruFocus rates NSE:ITC with a GF Score™ of 81/100 and a GF Value™ of ₹462.66 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 32 Tobacco Products companies, ITC ranks worse than 56.25% on this metric.
ITC's yield on cost for the quarter that ended in Mar. 2026 was 5.52.
The historical rank and industry rank for ITC's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:ITC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.8 Med: 3.58 Max: 8.37
Current: 5.52
During the past 13 years, ITC's highest Yield on Cost was 8.37. The lowest was 1.80. And the median was 3.58.
NSE:ITC's 5-Year Yield-on-Cost % is ranked worse than 56.25% of 32
companies
in the Tobacco Products industry
Industry Median: 5.855
vs NSE:ITC: 5.52
ITC (NSE:ITC) 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.
ITC 5-Year Yield-on-Cost % Related Terms
NSE:ITC vs PM, MO, TPB: 5-Year Yield-on-Cost % Comparison
For the Tobacco subindustry, ITC'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.
ITC 5-Year Yield-on-Cost % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, ITC's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where ITC'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.
ITC (NSE:ITC) has a 5-Year Yield-on-Cost % of 5.52 as of Jul. 27, 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 ITC and its competitors. This is 54% above median its historical median of 3.58. Over the past decade, ITC's 5-Year Yield-on-Cost % has ranged from 1.80 to 8.37. According to the industry distribution chart, ITC ranks #18 out of 32 companies in the Tobacco Products industry, placing it in the top 56.2%.
Is ITC's 5-Year Yield-on-Cost % too high?
ITC's current 5-Year Yield-on-Cost % of 5.52 is 54% above median its 10-year median of 3.58. Over the past 10 years, this metric has ranged from a low of 1.80 to a high of 8.37. The Tobacco Products industry median 5-Year Yield-on-Cost % is 5.86. ITC's value of 5.52 is 5.7% below this industry median. Based on the distribution chart, ITC ranks #18 out of 32 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, ITC has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ITC's 5-Year Yield-on-Cost % compare to PM and MO?
According to the Tobacco Products industry distribution chart, ITC ranks #18 out of 32 companies for 5-Year Yield-on-Cost %. This places ITC in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 5.86. ITC's value of 5.52 is 5.7% below this benchmark. Historically, ITC's own 5-Year Yield-on-Cost % has ranged from 1.80 to 8.37 over the past decade. While the company's 10-year median is 3.58 vs. the industry median of 5.86, ITC 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 Tobacco Products company?
The median 5-Year Yield-on-Cost % among Tobacco Products companies is 5.86, based on 32 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. ITC's current 5-Year Yield-on-Cost % of 5.52 is 5.7% 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 ITC and its competitors. For the Tobacco Products industry, the median 5-Year Yield-on-Cost % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITC's current 5-Year Yield-on-Cost % is 5.52, which is 54% above median its own 10-year median of 3.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITC stock overvalued right now?
Based on GuruFocus' analysis, ITC (NSE:ITC) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹462.66, compared to a current price of ₹285.85 — trading 38.2% below its estimated fair value. The current 5-Year Yield-on-Cost % is 5.52, which is 54% above median its 10-year median of 3.58 and 5.7% below the Tobacco Products industry median of 5.86. ITC's overall GF Score™ is 81/100 with 1 warning sign 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 ITC (NSE:ITC), the current 5-Year Yield-on-Cost % is 5.52 as of Jul. 27, 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 ITC (NSE:ITC) Overvalued in 2026?
Based on GuruFocus' analysis, ITC stock appears to be undervalued.
The current stock price of ₹285.85 is trading 38.2% below its estimated GF Value™ of ₹462.66.
GuruFocus considers ITC to be Significantly Undervalued.
Key valuation signals for NSE:ITC:
5-Year Yield-on-Cost %: 5.52 (54% above median its 10-year median of 3.58)
GF Value™: ₹462.66 vs. price of ₹285.85 (38.2% below fair value)
Industry Position: 5.7% below the Tobacco Products median (#18 of 32)
No single metric tells the full story. See the NSE:ITC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITC Ltd is an Indian conglomerate that predominantly operates in the consumer goods space, particularly cigarettes. The company operates in three main business segments: Fast Moving Consumer Goods; Paperboards, Paper, and Packaging; and Agri-Business. The company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.
81GF Score
Get the complete analysis for NSE:ITC
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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