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Tera SoftwareNSE:TERASOFT -3.86%74 5-Year Yield-on-Cost % is 0.23 as of Aug. 08, 2026, which is 78% below its 10-year median of 1.03. GuruFocus rates NSE:TERASOFT with a GF Score™ of 74/100 and a GF Value™ of ₹331.47 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,009 Software companies, Tera Software ranks worse than 92.96% on this metric.
Tera Software's yield on cost for the quarter that ended in Mar. 2026 was 0.23.
The historical rank and industry rank for Tera Software's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:TERASOFT'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.17 Med: 1.03 Max: 2.08
Current: 0.23
During the past 13 years, Tera Software's highest Yield on Cost was 2.08. The lowest was 0.17. And the median was 1.03.
NSE:TERASOFT's 5-Year Yield-on-Cost % is ranked worse than 92.96% of 1009
companies
in the Software industry
Industry Median: 3.04
vs NSE:TERASOFT: 0.23
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.
Tera Software 5-Year Yield-on-Cost % Related Terms
NSE:TERASOFT vs IBM, ACN, FISV: 5-Year Yield-on-Cost % Comparison
For the Information Technology Services subindustry, Tera Software'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.
Tera Software 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Tera Software's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Tera Software'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 Tera Software is calculated as
Tera Software (NSE:TERASOFT) has a 5-Year Yield-on-Cost % of 0.23 as of Aug. 08, 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 Tera Software and its competitors. This is 78% below median its historical median of 1.03. Over the past decade, Tera Software's 5-Year Yield-on-Cost % has ranged from 0.17 to 2.08. According to the industry distribution chart, Tera Software ranks #938 out of 1009 companies in the Software industry, placing it in the top 93%.
Is Tera Software's 5-Year Yield-on-Cost % too high?
Tera Software's current 5-Year Yield-on-Cost % of 0.23 is 78% below median its 10-year median of 1.03. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 2.08. The Software industry median 5-Year Yield-on-Cost % is 3.04. Tera Software's value of 0.23 is 92.4% below this industry median. Based on the distribution chart, Tera Software ranks #938 out of 1009 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Tera Software has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tera Software's 5-Year Yield-on-Cost % compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #938 out of 1009 companies for 5-Year Yield-on-Cost %. This places Tera Software in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.04. Tera Software's value of 0.23 is 92.4% below this benchmark. Historically, Tera Software's own 5-Year Yield-on-Cost % has ranged from 0.17 to 2.08 over the past decade. While the company's 10-year median is 1.03 vs. the industry median of 3.04, Tera Software 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 Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.04, based on 1,009 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. Tera Software's current 5-Year Yield-on-Cost % of 0.23 is 92.4% 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 Tera Software and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software's current 5-Year Yield-on-Cost % is 0.23, which is 78% below median its own 10-year median of 1.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tera Software stock overvalued right now?
Based on GuruFocus' analysis, Tera Software (NSE:TERASOFT) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹331.47, compared to a current price of ₹407.70 — trading 23% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.23, which is 78% below median its 10-year median of 1.03 and 92.4% below the Software industry median of 3.04. Tera Software's overall GF Score™ is 74/100 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 Tera Software (NSE:TERASOFT), the current 5-Year Yield-on-Cost % is 0.23 as of Aug. 08, 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 Tera Software (NSE:TERASOFT) Overvalued in 2026?
Based on GuruFocus' analysis, Tera Software stock appears to be overvalued.
The current stock price of ₹407.70 is trading 23% above its estimated GF Value™ of ₹331.47.
GuruFocus considers Tera Software to be Modestly Overvalued.
Key valuation signals for NSE:TERASOFT:
5-Year Yield-on-Cost %: 0.23 (78% below median its 10-year median of 1.03)
GF Value™: ₹331.47 vs. price of ₹407.70 (23% above fair value)
Industry Position: 92.4% below the Software median (#938 of 1009)
No single metric tells the full story. See the NSE:TERASOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tera Software Ltd is engaged in providing IT & Integrated services. The company provides IT and operational solutions such as fiber network infrastructure and services; installation, maintenance, and support services, as well as wireless and wired connectivity; digitization of land records; sales tax automation; and solutions for the automation and management of road transport and vehicle registration authorities, among others. The company's operating business segments include the Technical Division, which generates maximum revenue, Integrated Solutions, Projects Division, and Others.
74GF 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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