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Natco PharmaNSE:NATCOPHARM -0.33%87 5-Year Yield-on-Cost % is 0.78 as of Aug. 27, 2026, which is at its 10-year median of 0.78. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 87/100 and a GF Value™ of ₹824.56 (Fairly Valued). The stock has 2 warning signs investors should review. Among 506 Drug Manufacturers companies, Natco Pharma ranks worse than 75.1% on this metric.
Natco Pharma's yield on cost for the quarter that ended in Jun. 2026 was 0.78.
The historical rank and industry rank for Natco Pharma's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:NATCOPHARM'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.19 Med: 0.78 Max: 1.56
Current: 0.78
During the past 13 years, Natco Pharma's highest Yield on Cost was 1.56. The lowest was 0.19. And the median was 0.78.
NSE:NATCOPHARM's 5-Year Yield-on-Cost % is ranked worse than 75.1% of 506
companies
in the Drug Manufacturers industry
Industry Median: 2.36
vs NSE:NATCOPHARM: 0.78
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.
Natco Pharma 5-Year Yield-on-Cost % Related Terms
NSE:NATCOPHARM vs ZTS: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma'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.
Natco Pharma 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Natco Pharma'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.
Therefore, Yield-on-Cost of Natco Pharma is calculated as
Natco Pharma (NSE:NATCOPHARM) has a 5-Year Yield-on-Cost % of 0.78 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 Natco Pharma and its competitors. This is near median its historical median of 0.78. Over the past decade, Natco Pharma's 5-Year Yield-on-Cost % has ranged from 0.19 to 1.56. According to the industry distribution chart, Natco Pharma ranks #380 out of 506 companies in the Drug Manufacturers industry, placing it in the top 75.1%.
Is Natco Pharma's 5-Year Yield-on-Cost % too high?
Natco Pharma's current 5-Year Yield-on-Cost % of 0.78 is near median its 10-year median of 0.78. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 1.56. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.36. Natco Pharma's value of 0.78 is 66.9% below this industry median. Based on the distribution chart, Natco Pharma ranks #380 out of 506 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Natco Pharma has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's 5-Year Yield-on-Cost % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #380 out of 506 companies for 5-Year Yield-on-Cost %. This places Natco Pharma in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 2.36. Natco Pharma's value of 0.78 is 66.9% below this benchmark. Historically, Natco Pharma's own 5-Year Yield-on-Cost % has ranged from 0.19 to 1.56 over the past decade. While the company's 10-year median is 0.78 vs. the industry median of 2.36, Natco Pharma 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 Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.36, based on 506 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. Natco Pharma's current 5-Year Yield-on-Cost % of 0.78 is 66.9% 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 Natco Pharma and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current 5-Year Yield-on-Cost % is 0.78, which is near median its own 10-year median of 0.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹824.56, compared to a current price of ₹863.40 — trading 4.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.78, which is near median its 10-year median of 0.78 and 66.9% below the Drug Manufacturers industry median of 2.36. Natco Pharma's overall GF Score™ is 87/100 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 Natco Pharma (NSE:NATCOPHARM), the current 5-Year Yield-on-Cost % is 0.78 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹863.40 is trading 4.7% above its estimated GF Value™ of ₹824.56.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
5-Year Yield-on-Cost %: 0.78 (near median its 10-year median of 0.78)
GF Value™: ₹824.56 vs. price of ₹863.40 (4.7% above fair value)
Industry Position: 66.9% below the Drug Manufacturers median (#380 of 506)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
87GF 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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