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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.
Tamilnad Mercantile BankNSE:TMB -0.95%57 5-Year Yield-on-Cost % is 1.55 as of Jul. 23, 2026, which is 20% below its 10-year median of 1.93. GuruFocus rates NSE:TMB with a GF Score™ of 57/100 and a GF Value™ of ₹562.42 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,251 Banks companies, Tamilnad Mercantile Bank ranks worse than 87.21% on this metric.
The historical rank and industry rank for Tamilnad Mercantile Bank's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:TMB'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.84 Med: 1.93 Max: 2.59
Current: 1.55
During the past 7 years, Tamilnad Mercantile Bank's highest Yield on Cost was 2.59. The lowest was 0.84. And the median was 1.93.
NSE:TMB's 5-Year Yield-on-Cost % is ranked worse than 87.21% of 1251
companies
in the Banks industry
Industry Median: 3.88
vs NSE:TMB: 1.55
Tamilnad Mercantile Bank (NSE:TMB) 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.
Tamilnad Mercantile Bank 5-Year Yield-on-Cost % Related Terms
Tamilnad Mercantile Bank 5-Year Yield-on-Cost % Competitor Comparison
For the Banks - Regional subindustry, Tamilnad Mercantile Bank'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.
Tamilnad Mercantile Bank 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Tamilnad Mercantile Bank's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Tamilnad Mercantile Bank's 5-Year Yield-on-Cost % falls into.
Tamilnad Mercantile Bank 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.
Tamilnad Mercantile Bank (NSE:TMB) has a 5-Year Yield-on-Cost % of 1.55 as of Jul. 23, 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 Tamilnad Mercantile Bank and its competitors. This is 20% below median its historical median of 1.93. Over the past decade, Tamilnad Mercantile Bank's 5-Year Yield-on-Cost % has ranged from 0.84 to 2.59. According to the industry distribution chart, Tamilnad Mercantile Bank ranks #1091 out of 1251 companies in the Banks industry, placing it in the top 87.2%.
Is Tamilnad Mercantile Bank's 5-Year Yield-on-Cost % too high?
Tamilnad Mercantile Bank's current 5-Year Yield-on-Cost % of 1.55 is 20% below median its 10-year median of 1.93. Over the past 10 years, this metric has ranged from a low of 0.84 to a high of 2.59. The Banks industry median 5-Year Yield-on-Cost % is 3.88. Tamilnad Mercantile Bank's value of 1.55 is 60.1% below this industry median. Based on the distribution chart, Tamilnad Mercantile Bank ranks #1091 out of 1251 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Tamilnad Mercantile Bank has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tamilnad Mercantile Bank's 5-Year Yield-on-Cost % compare to competitors?
According to the Banks industry distribution chart, Tamilnad Mercantile Bank ranks #1091 out of 1251 companies for 5-Year Yield-on-Cost %. This places Tamilnad Mercantile Bank in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.88. Tamilnad Mercantile Bank's value of 1.55 is 60.1% below this benchmark. Historically, Tamilnad Mercantile Bank's own 5-Year Yield-on-Cost % has ranged from 0.84 to 2.59 over the past decade. While the company's 10-year median is 1.93 vs. the industry median of 3.88, Tamilnad Mercantile Bank 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 3.88, based on 1,251 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. Tamilnad Mercantile Bank's current 5-Year Yield-on-Cost % of 1.55 is 60.1% 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 Tamilnad Mercantile Bank and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tamilnad Mercantile Bank's current 5-Year Yield-on-Cost % is 1.55, which is 20% below median its own 10-year median of 1.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tamilnad Mercantile Bank stock overvalued right now?
Based on GuruFocus' analysis, Tamilnad Mercantile Bank (NSE:TMB) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹562.42, compared to a current price of ₹810.65 — trading 44.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.55, which is 20% below median its 10-year median of 1.93 and 60.1% below the Banks industry median of 3.88. Tamilnad Mercantile Bank's overall GF Score™ is 57/100 with 5 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 Tamilnad Mercantile Bank (NSE:TMB), the current 5-Year Yield-on-Cost % is 1.55 as of Jul. 23, 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 Tamilnad Mercantile Bank (NSE:TMB) Overvalued in 2026?
Based on GuruFocus' analysis, Tamilnad Mercantile Bank stock appears to be overvalued.
The current stock price of ₹810.65 is trading 44.1% above its estimated GF Value™ of ₹562.42.
GuruFocus considers Tamilnad Mercantile Bank to be Significantly Overvalued.
Key valuation signals for NSE:TMB:
5-Year Yield-on-Cost %: 1.55 (20% below median its 10-year median of 1.93)
GF Value™: ₹562.42 vs. price of ₹810.65 (44.1% above fair value)
Industry Position: 60.1% below the Banks median (#1091 of 1251)
No single metric tells the full story. See the NSE:TMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tamilnad Mercantile Bank Ltd is engaged in providing a wide range of banking & financial services involving retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business. The company has a portfolio of advances and deposits from a diversified customer base including retail customers, agricultural customers, and MSMEs. The segments of the bank are Treasury, Corporate and Wholesale banking, Retail banking, and Other banking Operations. It generates the majority of its revenue from the Retail banking segment.
57GF Score
Get the complete analysis for NSE:TMB
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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