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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.
LIC Housing FinanceNSE:LICHSGFIN +3.64%75 5-Year Yield-on-Cost % is 2.46 as of Aug. 27, 2026, which is 10% above its 10-year median of 2.23. GuruFocus rates NSE:LICHSGFIN with a GF Score™ of 75/100 and a GF Value™ of ₹599.73 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,248 Banks companies, LIC Housing Finance ranks worse than 75.32% on this metric.
LIC Housing Finance's yield on cost for the quarter that ended in Jun. 2026 was 2.46.
The historical rank and industry rank for LIC Housing Finance's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:LICHSGFIN'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.29 Med: 2.23 Max: 4.19
Current: 2.46
During the past 13 years, LIC Housing Finance's highest Yield on Cost was 4.19. The lowest was 1.29. And the median was 2.23.
NSE:LICHSGFIN's 5-Year Yield-on-Cost % is ranked worse than 75.32% of 1248
companies
in the Banks industry
Industry Median: 3.85
vs NSE:LICHSGFIN: 2.46
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.
LIC Housing Finance 5-Year Yield-on-Cost % Related Terms
NSE:LICHSGFIN vs RKT, FNMA, PFSI: 5-Year Yield-on-Cost % Comparison
For the Mortgage Finance subindustry, LIC Housing 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.
LIC Housing Finance 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, LIC Housing Finance's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where LIC Housing Finance'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.
LIC Housing Finance (NSE:LICHSGFIN) has a 5-Year Yield-on-Cost % of 2.46 as of Aug. 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 LIC Housing Finance and its competitors. This is 10% above median its historical median of 2.23. Over the past decade, LIC Housing Finance's 5-Year Yield-on-Cost % has ranged from 1.29 to 4.19. According to the industry distribution chart, LIC Housing Finance ranks #940 out of 1248 companies in the Banks industry, placing it in the top 75.3%.
Is LIC Housing Finance's 5-Year Yield-on-Cost % too high?
LIC Housing Finance's current 5-Year Yield-on-Cost % of 2.46 is 10% above median its 10-year median of 2.23. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 4.19. The Banks industry median 5-Year Yield-on-Cost % is 3.85. LIC Housing Finance's value of 2.46 is 36.1% below this industry median. Based on the distribution chart, LIC Housing Finance ranks #940 out of 1248 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, LIC Housing Finance has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LIC Housing Finance's 5-Year Yield-on-Cost % compare to RKT and FNMA?
According to the Banks industry distribution chart, LIC Housing Finance ranks #940 out of 1248 companies for 5-Year Yield-on-Cost %. This places LIC Housing Finance in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.85. LIC Housing Finance's value of 2.46 is 36.1% below this benchmark. Historically, LIC Housing Finance's own 5-Year Yield-on-Cost % has ranged from 1.29 to 4.19 over the past decade. While the company's 10-year median is 2.23 vs. the industry median of 3.85, LIC Housing Finance 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 Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.85, based on 1,248 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. LIC Housing Finance's current 5-Year Yield-on-Cost % of 2.46 is 36.1% 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 LIC Housing Finance and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LIC Housing Finance's current 5-Year Yield-on-Cost % is 2.46, which is 10% above median its own 10-year median of 2.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LIC Housing Finance stock overvalued right now?
Based on GuruFocus' analysis, LIC Housing Finance (NSE:LICHSGFIN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹599.73, compared to a current price of ₹524.40 — trading 12.6% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.46, which is 10% above median its 10-year median of 2.23 and 36.1% below the Banks industry median of 3.85. LIC Housing Finance'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 LIC Housing Finance (NSE:LICHSGFIN), the current 5-Year Yield-on-Cost % is 2.46 as of Aug. 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 LIC Housing Finance (NSE:LICHSGFIN) Overvalued in 2026?
Based on GuruFocus' analysis, LIC Housing Finance stock appears to be undervalued.
The current stock price of ₹524.40 is trading 12.6% below its estimated GF Value™ of ₹599.73.
GuruFocus considers LIC Housing Finance to be Modestly Undervalued.
Key valuation signals for NSE:LICHSGFIN:
5-Year Yield-on-Cost %: 2.46 (10% above median its 10-year median of 2.23)
GF Value™: ₹599.73 vs. price of ₹524.40 (12.6% below fair value)
Industry Position: 36.1% below the Banks median (#940 of 1248)
No single metric tells the full story. See the NSE:LICHSGFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LIC Housing Finance Ltd is a housing finance company that provides loans in India. Its main objective is to provides long-term finance to individuals for the purchase or construction of houses/flats for residential purposes. also provides finance on existing property for business/ personal needs and also gives loans to professionals for the purchase/ construction of clinics, nursing homes, diagnostic centres, office spaces, and equipment. The company also provides finance to builders and developers engaged in the business of construction of houses or flats for residential purposes and to be sold by them.
75GF 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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