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Tata CommunicationsNSE:TATACOMM +0.60%79 5-Year Yield-on-Cost % is 4.09 as of Sep. 02, 2026, which is 14% below its 10-year median of 4.77. GuruFocus rates NSE:TATACOMM with a GF Score™ of 79/100 and a GF Value™ of ₹2,030.85 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 223 Telecommunication Services companies, Tata Communications ranks worse than 56.5% on this metric.
Tata Communications's yield on cost for the quarter that ended in Jun. 2026 was 4.09.
The historical rank and industry rank for Tata Communications's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:TATACOMM'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.24 Med: 4.77 Max: 9.94
Current: 4.09
During the past 13 years, Tata Communications's highest Yield on Cost was 9.94. The lowest was 1.24. And the median was 4.77.
NSE:TATACOMM's 5-Year Yield-on-Cost % is ranked worse than 56.5% of 223
companies
in the Telecommunication Services industry
Industry Median: 4.52
vs NSE:TATACOMM: 4.09
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.
Tata Communications 5-Year Yield-on-Cost % Related Terms
NSE:TATACOMM vs VZ, TMUS, T: 5-Year Yield-on-Cost % Comparison
For the Telecom Services subindustry, Tata Communications'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.
Tata Communications 5-Year Yield-on-Cost % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Tata Communications's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Tata Communications'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.
Tata Communications (NSE:TATACOMM) has a 5-Year Yield-on-Cost % of 4.09 as of Sep. 02, 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 Tata Communications and its competitors. This is 14% below median its historical median of 4.77. Over the past decade, Tata Communications' 5-Year Yield-on-Cost % has ranged from 1.24 to 9.94. According to the industry distribution chart, Tata Communications ranks #126 out of 223 companies in the Telecommunication Services industry, placing it in the top 56.5%.
Is Tata Communications' 5-Year Yield-on-Cost % too high?
Tata Communications' current 5-Year Yield-on-Cost % of 4.09 is 14% below median its 10-year median of 4.77. Over the past 10 years, this metric has ranged from a low of 1.24 to a high of 9.94. The Telecommunication Services industry median 5-Year Yield-on-Cost % is 4.52. Tata Communications' value of 4.09 is 9.5% below this industry median. Based on the distribution chart, Tata Communications ranks #126 out of 223 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Tata Communications has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Communications' 5-Year Yield-on-Cost % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Tata Communications ranks #126 out of 223 companies for 5-Year Yield-on-Cost %. This places Tata Communications in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.52. Tata Communications' value of 4.09 is 9.5% below this benchmark. Historically, Tata Communications' own 5-Year Yield-on-Cost % has ranged from 1.24 to 9.94 over the past decade. While the company's 10-year median is 4.77 vs. the industry median of 4.52, Tata Communications 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 4.52, based on 223 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. Tata Communications's current 5-Year Yield-on-Cost % of 4.09 is 9.5% 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 Tata Communications and its competitors. For the Telecommunication 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. Tata Communications's current 5-Year Yield-on-Cost % is 4.09, which is 14% below median its own 10-year median of 4.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Communications stock overvalued right now?
Based on GuruFocus' analysis, Tata Communications (NSE:TATACOMM) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,030.85, compared to a current price of ₹1,733.80 — trading 14.6% below its estimated fair value. The current 5-Year Yield-on-Cost % is 4.09, which is 14% below median its 10-year median of 4.77 and 9.5% below the Telecommunication Services industry median of 4.52. Tata Communications' overall GF Score™ is 79/100 with 4 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 Tata Communications (NSE:TATACOMM), the current 5-Year Yield-on-Cost % is 4.09 as of Sep. 02, 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 Tata Communications (NSE:TATACOMM) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Communications stock appears to be undervalued.
The current stock price of ₹1,733.80 is trading 14.6% below its estimated GF Value™ of ₹2,030.85.
GuruFocus considers Tata Communications to be Modestly Undervalued.
Key valuation signals for NSE:TATACOMM:
5-Year Yield-on-Cost %: 4.09 (14% below median its 10-year median of 4.77)
GF Value™: ₹2,030.85 vs. price of ₹1,733.80 (14.6% below fair value)
Industry Position: 9.5% below the Telecommunication Services median (#126 of 223)
No single metric tells the full story. See the NSE:TATACOMM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Communications Ltd offers international and national voice and data transmission services, selling and leasing of bandwidth on undersea cable systems, internet connectivity services, and other value-added services comprising unified conferencing and collaboration services, managed hosting, mobile roaming and signalling services, transponder lease, television uplinking and other managed services, data center colocation services, network management and support, and other related services. The Group also undertakes leasing, letting out, licensing or developing immovable properties to earn income, including rental, lease and license income from land and buildings. Its segments are Data Services, Voice Solutions, and Real Estate, with Data Services generating maximum revenue.
79GF 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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