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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.
RailTel of IndiaNSE:RAILTEL +2.32%92 5-Year Yield-on-Cost % is 2.73 as of Aug. 22, 2026, which is 18% above its 10-year median of 2.31. GuruFocus rates NSE:RAILTEL with a GF Score™ of 92/100 and a GF Value™ of ₹514.83 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 226 Telecommunication Services companies, RailTel of India ranks worse than 65.93% on this metric.
RailTel of India's yield on cost for the quarter that ended in Jun. 2026 was 2.73.
The historical rank and industry rank for RailTel of India's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:RAILTEL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.8 Med: 2.31 Max: 8.08
Current: 2.73
During the past 12 years, RailTel of India's highest Yield on Cost was 8.08. The lowest was 0.80. And the median was 2.31.
NSE:RAILTEL's 5-Year Yield-on-Cost % is ranked worse than 65.93% of 226
companies
in the Telecommunication Services industry
Industry Median: 4.47
vs NSE:RAILTEL: 2.73
RailTel of India (NSE:RAILTEL) 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.
RailTel of India 5-Year Yield-on-Cost % Related Terms
NSE:RAILTEL vs VZ, TMUS, T: 5-Year Yield-on-Cost % Comparison
For the Telecom Services subindustry, RailTel of India'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.
RailTel of India 5-Year Yield-on-Cost % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, RailTel of India's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where RailTel of India's 5-Year Yield-on-Cost % falls into.
RailTel of India 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.
RailTel of India (NSE:RAILTEL) has a 5-Year Yield-on-Cost % of 2.73 as of Aug. 22, 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 RailTel of India and its competitors. This is 18% above median its historical median of 2.31. Over the past decade, RailTel of India's 5-Year Yield-on-Cost % has ranged from 0.80 to 8.08. According to the industry distribution chart, RailTel of India ranks #149 out of 226 companies in the Telecommunication Services industry, placing it in the top 65.9%.
Is RailTel of India's 5-Year Yield-on-Cost % too high?
RailTel of India's current 5-Year Yield-on-Cost % of 2.73 is 18% above median its 10-year median of 2.31. Over the past 10 years, this metric has ranged from a low of 0.80 to a high of 8.08. The Telecommunication Services industry median 5-Year Yield-on-Cost % is 4.47. RailTel of India's value of 2.73 is 38.9% below this industry median. Based on the distribution chart, RailTel of India ranks #149 out of 226 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, RailTel of India has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RailTel of India's 5-Year Yield-on-Cost % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, RailTel of India ranks #149 out of 226 companies for 5-Year Yield-on-Cost %. This places RailTel of India in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.47. RailTel of India's value of 2.73 is 38.9% below this benchmark. Historically, RailTel of India's own 5-Year Yield-on-Cost % has ranged from 0.80 to 8.08 over the past decade. While the company's 10-year median is 2.31 vs. the industry median of 4.47, RailTel of India 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 Telecommunication Services company?
The median 5-Year Yield-on-Cost % among Telecommunication Services companies is 4.47, based on 226 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. RailTel of India's current 5-Year Yield-on-Cost % of 2.73 is 38.9% 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 RailTel of India and its competitors. For the Telecommunication Services industry, the median 5-Year Yield-on-Cost % is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RailTel of India's current 5-Year Yield-on-Cost % is 2.73, which is 18% above median its own 10-year median of 2.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RailTel of India stock overvalued right now?
Based on GuruFocus' analysis, RailTel of India (NSE:RAILTEL) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹514.83, compared to a current price of ₹287.25 — trading 44.2% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.73, which is 18% above median its 10-year median of 2.31 and 38.9% below the Telecommunication Services industry median of 4.47. RailTel of India's overall GF Score™ is 92/100 with 3 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 RailTel of India (NSE:RAILTEL), the current 5-Year Yield-on-Cost % is 2.73 as of Aug. 22, 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 RailTel of India (NSE:RAILTEL) Overvalued in 2026?
Based on GuruFocus' analysis, RailTel of India stock appears to be undervalued.
The current stock price of ₹287.25 is trading 44.2% below its estimated GF Value™ of ₹514.83.
GuruFocus considers RailTel of India to be Significantly Undervalued.
Key valuation signals for NSE:RAILTEL:
5-Year Yield-on-Cost %: 2.73 (18% above median its 10-year median of 2.31)
GF Value™: ₹514.83 vs. price of ₹287.25 (44.2% below fair value)
Industry Position: 38.9% below the Telecommunication Services median (#149 of 226)
No single metric tells the full story. See the NSE:RAILTEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RailTel Corporation of India Ltd is a neutral telecom infrastructure provider in the country. It owns a pan-India optic fiber network on an exclusive Right of Way along the Railway track. The company's operating segment includes Telecom Services and Project Work services. It generates maximum revenue from the Telecom Services segment. The telecom services segment of the company provides services such as Managed Data Services; Leased Lines; Virtual Private Networks; Internet Leased Lines; Data Centre; Tower collocation, Rack and space, and NLD for voice carriage, and the project work services involve the following projects; National Optical Fiber Networks, Telecom and IT services related projects, and Enterprise specific IT & ITES Projects.
92GF Score
Get the complete analysis for NSE:RAILTEL
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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