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Imperial BrandsSTU:ITBA +0.60%65 5-Year Yield-on-Cost % is 5.76 as of Jul. 18, 2026, which is 21% below its 10-year median of 7.33. GuruFocus rates STU:ITBA with a GF Score™ of 65/100 and a GF Value™ of €18.34 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 32 Tobacco Products companies, Imperial Brands ranks better than 59.37% on this metric.
Imperial Brands's yield on cost for the quarter that ended in Mar. 2026 was 5.76.
The historical rank and industry rank for Imperial Brands's 5-Year Yield-on-Cost % or its related term are showing as below:
STU:ITBA'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.35 Med: 7.33 Max: 16.2
Current: 5.76
During the past 13 years, Imperial Brands's highest Yield on Cost was 16.20. The lowest was 3.35. And the median was 7.33.
STU:ITBA's 5-Year Yield-on-Cost % is ranked better than 59.37% of 32
companies
in the Tobacco Products industry
Industry Median: 5.955
vs STU:ITBA: 5.76
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.
Imperial Brands 5-Year Yield-on-Cost % Related Terms
STU:ITBA vs PM, MO, TPB: 5-Year Yield-on-Cost % Comparison
For the Tobacco subindustry, Imperial Brands'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.
Imperial Brands 5-Year Yield-on-Cost % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Imperial Brands's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Imperial Brands'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 Imperial Brands is calculated as
Imperial Brands (STU:ITBA) has a 5-Year Yield-on-Cost % of 5.76 as of Jul. 18, 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 Imperial Brands and its competitors. This is 21% below median its historical median of 7.33. Over the past decade, Imperial Brands' 5-Year Yield-on-Cost % has ranged from 3.35 to 16.20. According to the industry distribution chart, Imperial Brands ranks #13 out of 32 companies in the Tobacco Products industry, placing it in the top 40.6%.
Is Imperial Brands' 5-Year Yield-on-Cost % too high?
Imperial Brands' current 5-Year Yield-on-Cost % of 5.76 is 21% below median its 10-year median of 7.33. Over the past 10 years, this metric has ranged from a low of 3.35 to a high of 16.20. The Tobacco Products industry median 5-Year Yield-on-Cost % is 5.96. Imperial Brands' value of 5.76 is 3.3% below this industry median. Based on the distribution chart, Imperial Brands ranks #13 out of 32 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Imperial Brands has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Imperial Brands' 5-Year Yield-on-Cost % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Imperial Brands ranks #13 out of 32 companies for 5-Year Yield-on-Cost %. This puts Imperial Brands in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 5.96. Imperial Brands' value of 5.76 is 3.3% below this benchmark. Historically, Imperial Brands' own 5-Year Yield-on-Cost % has ranged from 3.35 to 16.20 over the past decade. While the company's 10-year median is 7.33 vs. the industry median of 5.96, Imperial Brands 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 Tobacco Products company?
The median 5-Year Yield-on-Cost % among Tobacco Products companies is 5.96, based on 32 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. Imperial Brands's current 5-Year Yield-on-Cost % of 5.76 is 3.3% 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 Imperial Brands and its competitors. For the Tobacco Products industry, the median 5-Year Yield-on-Cost % is 5.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Imperial Brands's current 5-Year Yield-on-Cost % is 5.76, which is 21% below median its own 10-year median of 7.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Imperial Brands stock overvalued right now?
Based on GuruFocus' analysis, Imperial Brands (STU:ITBA) is currently considered Significantly Overvalued. The stock's GF Value™ is €18.34, compared to a current price of €33.80 — trading 84.3% above its estimated fair value. The current 5-Year Yield-on-Cost % is 5.76, which is 21% below median its 10-year median of 7.33 and 3.3% below the Tobacco Products industry median of 5.96. Imperial Brands' overall GF Score™ is 65/100 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 Imperial Brands (STU:ITBA), the current 5-Year Yield-on-Cost % is 5.76 as of Jul. 18, 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 Imperial Brands (STU:ITBA) Overvalued in 2026?
Based on GuruFocus' analysis, Imperial Brands stock appears to be overvalued.
The current stock price of €33.80 is trading 84.3% above its estimated GF Value™ of €18.34.
GuruFocus considers Imperial Brands to be Significantly Overvalued.
Key valuation signals for STU:ITBA:
5-Year Yield-on-Cost %: 5.76 (21% below median its 10-year median of 7.33)
GF Value™: €18.34 vs. price of €33.80 (84.3% above fair value)
Industry Position: 3.3% below the Tobacco Products median (#13 of 32)
No single metric tells the full story. See the STU:ITBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Imperial Brands is the world's fourth-largest international tobacco company (excluding China National Tobacco), with total fiscal 2025 volume of 187 billion cigarettes sold in more than 120 countries. Its largest and most important markets are the US (where it sits as the third-largest manufacturer, following its acquisition of the Winston and Blu brands), Germany, the UK, Spain, and Australia. The firm also holds a leading global position in the fine-cut tobacco and hand-rolling paper categories. It has a logistics platform in Western Europe, Altadis.
65GF 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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