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Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Gaotu Techedu's annualizedNet Income for the quarter that ended in Mar. 2026 was €17.3 Mil. Gaotu Techedu's average total tangible assets for the quarter that ended in Mar. 2026 was €708.6 Mil. Therefore, Gaotu Techedu's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.44%.
The historical rank and industry rank for Gaotu Techedu's Return-on-Tangible-Asset or its related term are showing as below:
FRA:18WA'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -84.25 Med: -5.54 Max: 12.13
Current: -7.43
During the past 9 years, Gaotu Techedu's highest Return-on-Tangible-Asset was 12.13%. The lowest was -84.25%. And the median was -5.54%.
FRA:18WA's Return-on-Tangible-Asset is ranked worse than 84.03% of 263
companies
in the Education industry
Industry Median: 4.45
vs FRA:18WA: -7.43
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Gaotu Techedu Return-on-Tangible-Asset Related Terms
Gaotu Techedu Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Gaotu Techedu's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:18WA vs JDZG, FC, KLC: Return-on-Tangible-Asset Comparison
For the Education & Training Services subindustry, Gaotu Techedu's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Gaotu Techedu Return-on-Tangible-Asset vs Education Industry
For the Education industry and Consumer Defensive sector, Gaotu Techedu's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Gaotu Techedu's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.44% mean?
Gaotu Techedu (FRA:18WA) has a Return-on-Tangible-Asset of 2.44% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Gaotu Techedu and its competitors. According to the industry distribution chart, Gaotu Techedu ranks #221 out of 263 companies in the Education industry, placing it in the top 84%.
Is Gaotu Techedu's Return-on-Tangible-Asset too high?
Gaotu Techedu's current Return-on-Tangible-Asset is 2.44%. The Education industry median Return-on-Tangible-Asset is 4.45. Gaotu Techedu's value of 2.44% is 45.2% below this industry median. Based on the distribution chart, Gaotu Techedu ranks #221 out of 263 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Gaotu Techedu has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Gaotu Techedu's Return-on-Tangible-Asset compare to JDZG and FC?
According to the Education industry distribution chart, Gaotu Techedu ranks #221 out of 263 companies for Return-on-Tangible-Asset. This places Gaotu Techedu in the lower half of its industry. The industry median Return-on-Tangible-Asset is 4.45. Gaotu Techedu's value of 2.44% is 45.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Education company?
The median Return-on-Tangible-Asset among Education companies is 4.45, based on 263 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gaotu Techedu's current Return-on-Tangible-Asset of 2.44% is 45.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Gaotu Techedu and its competitors. For the Education industry, the median Return-on-Tangible-Asset is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current Return-on-Tangible-Asset is 2.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gaotu Techedu stock overvalued right now?
Gaotu Techedu (FRA:18WA) has a current Return-on-Tangible-Asset of 2.44%. The stock's GF Value™ is €4.88, compared to a current price of €1.33 — trading 72.7% below its estimated fair value. The current Return-on-Tangible-Asset is 2.44% and 45.2% below the Education industry median of 4.45. Gaotu Techedu's overall GF Score™ is 67/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Gaotu Techedu (FRA:18WA), the current Return-on-Tangible-Asset is 2.44% as of Mar. 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 Gaotu Techedu (FRA:18WA) Overvalued in 2026?
Based on GuruFocus' analysis, Gaotu Techedu stock appears to be undervalued.
The current stock price of €1.33 is trading 72.7% below its estimated GF Value™ of €4.88.
Key valuation signals for FRA:18WA:
Return-on-Tangible-Asset: 2.44%
GF Value™: €4.88 vs. price of €1.33 (72.7% below fair value)
Industry Position: 45.2% below the Education median (#221 of 263)
No single metric tells the full story. See the FRA:18WA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gaotu Techedu Inc is a technology-driven education company that provides online live courses in a large-class setting backed by its proprietary technology infrastructure. The company offers courses in large-class format, which amplifies the benefits of online education and allows it to rapidly expand its student base. It operates solely in the PRC and all assets are located in the PRC. The learning services that the company offers include Traditional Learning Services, Non-Academic Tutoring Services, and College Student and Adult Education Services. It derives maximum revenue from Learning Services and also from Educational content & digitalized learning products.
67GF Score
Get the complete analysis for FRA:18WA
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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