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Varun BeveragesNSE:VBL -0.45%95 5-Year Yield-on-Cost % is 2.96 as of Aug. 09, 2026, which is 66% above its 10-year median of 1.78. GuruFocus rates NSE:VBL with a GF Score™ of 95/100 and a GF Value™ of ₹609.58 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 79 Beverages - Non-Alcoholic companies, Varun Beverages ranks worse than 65.82% on this metric.
Varun Beverages's yield on cost for the quarter that ended in Jun. 2026 was 2.96.
The historical rank and industry rank for Varun Beverages's 5-Year Yield-on-Cost % or its related term are showing as below:
NSE:VBL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.79 Med: 1.78 Max: 3.36
Current: 2.96
During the past 11 years, Varun Beverages's highest Yield on Cost was 3.36. The lowest was 0.79. And the median was 1.78.
NSE:VBL's 5-Year Yield-on-Cost % is ranked worse than 65.82% of 79
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 3.74
vs NSE:VBL: 2.96
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.
Varun Beverages 5-Year Yield-on-Cost % Related Terms
NSE:VBL vs KO, PEP, MNST: 5-Year Yield-on-Cost % Comparison
For the Beverages - Non-Alcoholic subindustry, Varun Beverages'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.
Varun Beverages 5-Year Yield-on-Cost % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Varun Beverages's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Varun Beverages'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 Varun Beverages is calculated as
Varun Beverages (NSE:VBL) has a 5-Year Yield-on-Cost % of 2.96 as of Aug. 09, 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 Varun Beverages and its competitors. This is 66% above median its historical median of 1.78. Over the past decade, Varun Beverages' 5-Year Yield-on-Cost % has ranged from 0.79 to 3.36. According to the industry distribution chart, Varun Beverages ranks #52 out of 79 companies in the Beverages - Non-Alcoholic industry, placing it in the top 65.8%.
Is Varun Beverages' 5-Year Yield-on-Cost % too high?
Varun Beverages' current 5-Year Yield-on-Cost % of 2.96 is 66% above median its 10-year median of 1.78. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 3.36. The Beverages - Non-Alcoholic industry median 5-Year Yield-on-Cost % is 3.74. Varun Beverages' value of 2.96 is 20.9% below this industry median. Based on the distribution chart, Varun Beverages ranks #52 out of 79 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, Varun Beverages has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varun Beverages' 5-Year Yield-on-Cost % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Varun Beverages ranks #52 out of 79 companies for 5-Year Yield-on-Cost %. This places Varun Beverages in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.74. Varun Beverages' value of 2.96 is 20.9% below this benchmark. Historically, Varun Beverages' own 5-Year Yield-on-Cost % has ranged from 0.79 to 3.36 over the past decade. While the company's 10-year median is 1.78 vs. the industry median of 3.74, Varun Beverages 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 Beverages - Non-Alcoholic company?
The median 5-Year Yield-on-Cost % among Beverages - Non-Alcoholic companies is 3.74, based on 79 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. Varun Beverages's current 5-Year Yield-on-Cost % of 2.96 is 20.9% 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 Varun Beverages and its competitors. For the Beverages - Non-Alcoholic industry, the median 5-Year Yield-on-Cost % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current 5-Year Yield-on-Cost % is 2.96, which is 66% above median its own 10-year median of 1.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varun Beverages stock overvalued right now?
Based on GuruFocus' analysis, Varun Beverages (NSE:VBL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹609.58, compared to a current price of ₹442.00 — trading 27.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.96, which is 66% above median its 10-year median of 1.78 and 20.9% below the Beverages - Non-Alcoholic industry median of 3.74. Varun Beverages' overall GF Score™ is 95/100 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 Varun Beverages (NSE:VBL), the current 5-Year Yield-on-Cost % is 2.96 as of Aug. 09, 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 Varun Beverages (NSE:VBL) Overvalued in 2026?
Based on GuruFocus' analysis, Varun Beverages stock appears to be undervalued.
The current stock price of ₹442.00 is trading 27.5% below its estimated GF Value™ of ₹609.58.
GuruFocus considers Varun Beverages to be Modestly Undervalued.
Key valuation signals for NSE:VBL:
5-Year Yield-on-Cost %: 2.96 (66% above median its 10-year median of 1.78)
GF Value™: ₹609.58 vs. price of ₹442.00 (27.5% below fair value)
Industry Position: 20.9% below the Beverages - Non-Alcoholic median (#52 of 79)
No single metric tells the full story. See the NSE:VBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varun Beverages Ltd is engaged in manufacturing, selling, bottling, and distribution of beverages of the Pepsi brand in geographically pre-defined territories of India, Sri Lanka, Nepal, Zambia, Morocco, and Zimbabwe. Its brands include Seven-Up, Mountain Dew, Mirinda, Nimbooz, Tropicana Slice, and other related products. The firm generates a majority of its revenue within India.
95GF Score
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