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Pernod RicardFRA:PER -0.63%84 Return-on-Tangible-Asset is 9.97% as of Dec. 2025, which is 2% below its 10-year median of 10.17. GuruFocus rates FRA:PER with a GF Score™ of 84/100 and a GF Value™ of €103.89 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 213 Beverages - Alcoholic companies, Pernod Ricard ranks better than 71.36% on this metric.
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. Pernod Ricard's annualizedNet Income for the quarter that ended in Dec. 2025 was €1,950 Mil. Pernod Ricard's average total tangible assets for the quarter that ended in Dec. 2025 was €19,566 Mil. Therefore, Pernod Ricard's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 9.97%.
The historical rank and industry rank for Pernod Ricard's Return-on-Tangible-Asset or its related term are showing as below:
FRA:PER'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.28 Med: 10.17 Max: 12.3
Current: 7.1
During the past 13 years, Pernod Ricard's highest Return-on-Tangible-Asset was 12.30%. The lowest was 2.28%. And the median was 10.17%.
FRA:PER's Return-on-Tangible-Asset is ranked better than 71.36% of 213
companies
in the Beverages - Alcoholic industry
Industry Median: 3.09
vs FRA:PER: 7.10
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.
Pernod Ricard Return-on-Tangible-Asset Related Terms
Pernod Ricard Return-on-Tangible-Asset Historical Data
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The historical data trend for Pernod Ricard'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:PER vs BF.B: Return-on-Tangible-Asset Comparison
For the Beverages - Wineries & Distilleries subindustry, Pernod Ricard'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.
Pernod Ricard Return-on-Tangible-Asset vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Pernod Ricard's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Pernod Ricard'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 two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 9.97% mean?
Pernod Ricard (FRA:PER) has a Return-on-Tangible-Asset of 9.97% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Pernod Ricard and its competitors. This is near median its historical median of 10.17. Over the past decade, Pernod Ricard's Return-on-Tangible-Asset has ranged from 2.28 to 12.30. According to the industry distribution chart, Pernod Ricard ranks #61 out of 213 companies in the Beverages - Alcoholic industry, placing it in the top 28.6%.
Is Pernod Ricard's Return-on-Tangible-Asset too high?
Pernod Ricard's current Return-on-Tangible-Asset of 9.97% is near median its 10-year median of 10.17. Over the past 10 years, this metric has ranged from a low of 2.28 to a high of 12.30. The Beverages - Alcoholic industry median Return-on-Tangible-Asset is 3.09. Pernod Ricard's value of 9.97% is 222.7% above this industry median. Based on the distribution chart, Pernod Ricard ranks #61 out of 213 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Pernod Ricard has a GF Score™ of 84/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Pernod Ricard's Return-on-Tangible-Asset compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Pernod Ricard ranks #61 out of 213 companies for Return-on-Tangible-Asset. This puts Pernod Ricard in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.09. Pernod Ricard's value of 9.97% is 222.7% above this benchmark. Historically, Pernod Ricard's own Return-on-Tangible-Asset has ranged from 2.28 to 12.30 over the past decade. While the company's 10-year median is 10.17 vs. the industry median of 3.09, Pernod Ricard 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 Return-on-Tangible-Asset for a Beverages - Alcoholic company?
The median Return-on-Tangible-Asset among Beverages - Alcoholic companies is 3.09, based on 213 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. Pernod Ricard's current Return-on-Tangible-Asset of 9.97% is 222.7% 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 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 Pernod Ricard and its competitors. For the Beverages - Alcoholic industry, the median Return-on-Tangible-Asset is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pernod Ricard's current Return-on-Tangible-Asset is 9.97%, which is near median its own 10-year median of 10.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pernod Ricard stock overvalued right now?
Based on GuruFocus' analysis, Pernod Ricard (FRA:PER) is currently considered Possible Value Trap. The stock's GF Value™ is €103.89, compared to a current price of €63.14 — trading 39.2% below its estimated fair value. The current Return-on-Tangible-Asset is 9.97%, which is near median its 10-year median of 10.17 and 222.7% above the Beverages - Alcoholic industry median of 3.09. Pernod Ricard's overall GF Score™ is 84/100 with 5 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 Pernod Ricard (FRA:PER), the current Return-on-Tangible-Asset is 9.97% as of Dec. 2025. 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 Pernod Ricard (FRA:PER) Overvalued in 2026?
Based on GuruFocus' analysis, Pernod Ricard stock appears to be undervalued.
The current stock price of €63.14 is trading 39.2% below its estimated GF Value™ of €103.89.
GuruFocus considers Pernod Ricard to be Possible Value Trap.
Key valuation signals for FRA:PER:
Return-on-Tangible-Asset: 9.97% (near median its 10-year median of 10.17)
GF Value™: €103.89 vs. price of €63.14 (39.2% below fair value)
Industry Position: 222.7% above the Beverages - Alcoholic median (#61 of 213)
No single metric tells the full story. See the FRA:PER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pernod Ricard was formed in 1975 through the merger of Pernod, founded in 1805, and Ricard, created in 1932. Through acquisitions, the firm has grown to become the world's second-largest distiller by volume, behind Diageo. Pernod Ricard possesses the most comprehensive spirits portfolio globally, distributing over 240 brands across 160 countries. Flagship spirits brands include Absolut vodka, Beefeater gin, Chivas Regal and The Glenlivet scotch whisky, Jameson Irish whiskey, Malibu rum, and Martell cognac. The firm has also shed noncore assets over the years, including several wine brands in 2025.
84GF Score
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