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Takeda Pharmaceutical CoTSE:4502 +1.79%64 5-Year Yield-on-Cost % is 3.92 as of Jul. 30, 2026, which is 21% below its 10-year median of 4.94. GuruFocus rates TSE:4502 with a GF Score™ of 64/100 and a GF Value™ of 円4,547.49 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 513 Drug Manufacturers companies, Takeda Pharmaceutical Co ranks better than 66.47% on this metric.
The historical rank and industry rank for Takeda Pharmaceutical Co's 5-Year Yield-on-Cost % or its related term are showing as below:
TSE:4502'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.05 Med: 4.94 Max: 6.95
Current: 3.92
During the past 13 years, Takeda Pharmaceutical Co's highest Yield on Cost was 6.95. The lowest was 3.05. And the median was 4.94.
TSE:4502's 5-Year Yield-on-Cost % is ranked better than 66.47% of 513
companies
in the Drug Manufacturers industry
Industry Median: 2.29
vs TSE:4502: 3.92
Takeda Pharmaceutical Co (TSE:4502) 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.
Takeda Pharmaceutical Co 5-Year Yield-on-Cost % Related Terms
TSE:4502 vs ZTS, UTHR: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Takeda Pharmaceutical Co'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.
Takeda Pharmaceutical Co 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Takeda Pharmaceutical Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Takeda Pharmaceutical Co's 5-Year Yield-on-Cost % falls into.
Takeda Pharmaceutical Co 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.
Takeda Pharmaceutical Co (TSE:4502) has a 5-Year Yield-on-Cost % of 3.92 as of Jul. 30, 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 Takeda Pharmaceutical Co and its competitors. This is 21% below median its historical median of 4.94. Over the past decade, Takeda Pharmaceutical Co's 5-Year Yield-on-Cost % has ranged from 3.05 to 6.95. According to the industry distribution chart, Takeda Pharmaceutical Co ranks #172 out of 513 companies in the Drug Manufacturers industry, placing it in the top 33.5%.
Is Takeda Pharmaceutical Co's 5-Year Yield-on-Cost % too high?
Takeda Pharmaceutical Co's current 5-Year Yield-on-Cost % of 3.92 is 21% below median its 10-year median of 4.94. Over the past 10 years, this metric has ranged from a low of 3.05 to a high of 6.95. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.29. Takeda Pharmaceutical Co's value of 3.92 is 71.2% above this industry median. Based on the distribution chart, Takeda Pharmaceutical Co ranks #172 out of 513 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Takeda Pharmaceutical Co has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Takeda Pharmaceutical Co's 5-Year Yield-on-Cost % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Takeda Pharmaceutical Co ranks #172 out of 513 companies for 5-Year Yield-on-Cost %. This puts Takeda Pharmaceutical Co in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 2.29. Takeda Pharmaceutical Co's value of 3.92 is 71.2% above this benchmark. Historically, Takeda Pharmaceutical Co's own 5-Year Yield-on-Cost % has ranged from 3.05 to 6.95 over the past decade. While the company's 10-year median is 4.94 vs. the industry median of 2.29, Takeda Pharmaceutical Co 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 Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.29, based on 513 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. Takeda Pharmaceutical Co's current 5-Year Yield-on-Cost % of 3.92 is 71.2% 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 Takeda Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Takeda Pharmaceutical Co's current 5-Year Yield-on-Cost % is 3.92, which is 21% below median its own 10-year median of 4.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Takeda Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Takeda Pharmaceutical Co (TSE:4502) is currently considered Modestly Overvalued. The stock's GF Value™ is 円4,547.49, compared to a current price of 円5,847.00 — trading 28.6% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.92, which is 21% below median its 10-year median of 4.94 and 71.2% above the Drug Manufacturers industry median of 2.29. Takeda Pharmaceutical Co's overall GF Score™ is 64/100 with 10 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 Takeda Pharmaceutical Co (TSE:4502), the current 5-Year Yield-on-Cost % is 3.92 as of Jul. 30, 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 Takeda Pharmaceutical Co (TSE:4502) Overvalued in 2026?
Based on GuruFocus' analysis, Takeda Pharmaceutical Co stock appears to be overvalued.
The current stock price of 円5,847.00 is trading 28.6% above its estimated GF Value™ of 円4,547.49.
GuruFocus considers Takeda Pharmaceutical Co to be Modestly Overvalued.
Key valuation signals for TSE:4502:
5-Year Yield-on-Cost %: 3.92 (21% below median its 10-year median of 4.94)
GF Value™: 円4,547.49 vs. price of 円5,847.00 (28.6% above fair value)
Industry Position: 71.2% above the Drug Manufacturers median (#172 of 513)
No single metric tells the full story. See the TSE:4502 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Takeda Pharmaceutical is Japan's largest pharmaceutical company, with revenue of JPY 4.5 trillion in fiscal 2025. The company's five core therapeutic areas are oncology, gastroenterology, neuroscience, rare diseases, and plasma-derived therapies, which account for more than 80% of revenue. Its geographic footprint is well diversified, with about 50% from the US, 10% from Japan, 25% from Europe, and 15% from Canada.
64GF Score
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