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Towne BankTOWN -0.63%61 5-Year Yield-on-Cost % is 4.50 as of Jul. 22, 2026, which is 11% above its 10-year median of 4.07. GuruFocus rates TOWN with a GF Score™ of 61/100 and a GF Value™ of $37.11 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,251 Banks companies, Towne Bank ranks better than 58.91% on this metric.
Towne Bank's yield on cost for the quarter that ended in Mar. 2026 was 4.50.
The historical rank and industry rank for Towne Bank's 5-Year Yield-on-Cost % or its related term are showing as below:
TOWN'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.19 Med: 4.07 Max: 6.73
Current: 4.5
During the past 13 years, Towne Bank's highest Yield on Cost was 6.73. The lowest was 2.19. And the median was 4.07.
TOWN's 5-Year Yield-on-Cost % is ranked better than 58.91% of 1251
companies
in the Banks industry
Industry Median: 3.88
vs TOWN: 4.50
Towne Bank (NAS:TOWN) 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.
Towne Bank 5-Year Yield-on-Cost % Related Terms
TOWN vs SFNC, PRK, SBCF: 5-Year Yield-on-Cost % Comparison
For the Banks - Regional subindustry, Towne 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.
Towne Bank 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Towne Bank's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Towne Bank'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 Towne Bank is calculated as
Towne Bank (TOWN) has a 5-Year Yield-on-Cost % of 4.50 as of Jul. 22, 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 Towne Bank and its competitors. This is 11% above median its historical median of 4.07. Over the past decade, Towne Bank's 5-Year Yield-on-Cost % has ranged from 2.19 to 6.73. According to the industry distribution chart, Towne Bank ranks #514 out of 1251 companies in the Banks industry, placing it in the top 41.1%.
Is Towne Bank's 5-Year Yield-on-Cost % too high?
Towne Bank's current 5-Year Yield-on-Cost % of 4.50 is 11% above median its 10-year median of 4.07. Over the past 10 years, this metric has ranged from a low of 2.19 to a high of 6.73. The Banks industry median 5-Year Yield-on-Cost % is 3.88. Towne Bank's value of 4.50 is 16% above this industry median. Based on the distribution chart, Towne Bank ranks #514 out of 1251 companies in the Banks industry, which is above the industry midpoint. Overall, Towne Bank has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Towne Bank's 5-Year Yield-on-Cost % compare to SFNC and PRK?
According to the Banks industry distribution chart, Towne Bank ranks #514 out of 1251 companies for 5-Year Yield-on-Cost %. This puts Towne Bank in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.88. Towne Bank's value of 4.50 is 16% above this benchmark. Historically, Towne Bank's own 5-Year Yield-on-Cost % has ranged from 2.19 to 6.73 over the past decade. While the company's 10-year median is 4.07 vs. the industry median of 3.88, Towne Bank has consistently been above 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. Towne Bank's current 5-Year Yield-on-Cost % of 4.50 is 16% above 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 Towne 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. Towne Bank's current 5-Year Yield-on-Cost % is 4.50, which is 11% above median its own 10-year median of 4.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Towne Bank stock overvalued right now?
Based on GuruFocus' analysis, Towne Bank (TOWN) is currently considered Fairly Valued. The stock's GF Value™ is $37.11, compared to a current price of $36.09 — trading 2.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 4.50, which is 11% above median its 10-year median of 4.07 and 16% above the Banks industry median of 3.88. Towne Bank's overall GF Score™ is 61/100 with 2 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 Towne Bank (TOWN), the current 5-Year Yield-on-Cost % is 4.50 as of Jul. 22, 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 Towne Bank (TOWN) Overvalued in 2026?
Based on GuruFocus' analysis, Towne Bank stock appears to be undervalued.
The current stock price of $36.09 is trading 2.7% below its estimated GF Value™ of $37.11.
GuruFocus considers Towne Bank to be Fairly Valued.
Key valuation signals for TOWN:
5-Year Yield-on-Cost %: 4.50 (11% above median its 10-year median of 4.07)
GF Value™: $37.11 vs. price of $36.09 (2.7% below fair value)
Industry Position: 16% above the Banks median (#514 of 1251)
No single metric tells the full story. See the TOWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Towne Bank is a financial services company serving individuals, commercial enterprises and professionals, offering retail and commercial banking services in Virginia and North Carolina. The company has four reportable segments: Banking, which provides loan and deposit services, commercial mortgage brokerage, and investment and asset management services; Mortgage, which originates mortgage loans principally sold in the secondary market through purchase commitments from investors; Resort Vacation Management, which provides residential resort property management services; and Insurance, which provides property, casualty, life and health insurance solutions for businesses, individuals and community organizations through a variety of carriers.
61GF Score
Get the complete analysis for TOWN
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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