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ITCLUX:ITC 82 Return-on-Tangible-Asset is 24.07% as of Mar. 2026, which is 15% above its 10-year median of 20.85. GuruFocus rates LUX:ITC with a GF Score™ of 82/100 and a GF Value™ of $9.06. The stock has 1 warning sign investors should review. Among 49 Tobacco Products companies, ITC ranks better than 77.55% 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. ITC's annualizedNet Income for the quarter that ended in Mar. 2026 was $2,322 Mil. ITC's average total tangible assets for the quarter that ended in Mar. 2026 was $9,645 Mil. Therefore, ITC's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 24.07%.
The historical rank and industry rank for ITC's Return-on-Tangible-Asset or its related term are showing as below:
LUX:ITC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 17.83 Med: 20.85 Max: 40.21
Current: 23.83
During the past 13 years, ITC's highest Return-on-Tangible-Asset was 40.21%. The lowest was 17.83%. And the median was 20.85%.
LUX:ITC's Return-on-Tangible-Asset is ranked better than 77.55% of 49
companies
in the Tobacco Products industry
Industry Median: 10.52
vs LUX:ITC: 23.83
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.
ITC Return-on-Tangible-Asset Related Terms
ITC Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for ITC'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.
LUX:ITC vs PM, MO, TPB: Return-on-Tangible-Asset Comparison
For the Tobacco subindustry, ITC'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.
ITC Return-on-Tangible-Asset vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, ITC's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where ITC'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 24.07% mean?
ITC (LUX:ITC) has a Return-on-Tangible-Asset of 24.07% 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 ITC and its competitors. This is 15% above median its historical median of 20.85. Over the past decade, ITC's Return-on-Tangible-Asset has ranged from 17.83 to 40.21. According to the industry distribution chart, ITC ranks #11 out of 49 companies in the Tobacco Products industry, placing it in the top 22.4%.
Is ITC's Return-on-Tangible-Asset too high?
ITC's current Return-on-Tangible-Asset of 24.07% is 15% above median its 10-year median of 20.85. Over the past 10 years, this metric has ranged from a low of 17.83 to a high of 40.21. The Tobacco Products industry median Return-on-Tangible-Asset is 10.52. ITC's value of 24.07% is 128.8% above this industry median. Based on the distribution chart, ITC ranks #11 out of 49 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, ITC has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does ITC's Return-on-Tangible-Asset compare to PM and MO?
According to the Tobacco Products industry distribution chart, ITC ranks #11 out of 49 companies for Return-on-Tangible-Asset. This places ITC in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 10.52. ITC's value of 24.07% is 128.8% above this benchmark. Historically, ITC's own Return-on-Tangible-Asset has ranged from 17.83 to 40.21 over the past decade. While the company's 10-year median is 20.85 vs. the industry median of 10.52, ITC 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 Tobacco Products company?
The median Return-on-Tangible-Asset among Tobacco Products companies is 10.52, based on 49 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. ITC's current Return-on-Tangible-Asset of 24.07% is 128.8% 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 ITC and its competitors. For the Tobacco Products industry, the median Return-on-Tangible-Asset is 10.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITC's current Return-on-Tangible-Asset is 24.07%, which is 15% above median its own 10-year median of 20.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITC stock overvalued right now?
ITC (LUX:ITC) has a current Return-on-Tangible-Asset of 24.07%. The stock's GF Value™ is $9.06, compared to a current price of $5.50 — trading 39.3% below its estimated fair value. The current Return-on-Tangible-Asset is 24.07%, which is 15% above median its 10-year median of 20.85 and 128.8% above the Tobacco Products industry median of 10.52. ITC's overall GF Score™ is 82/100 with 1 warning sign 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 ITC (LUX:ITC), the current Return-on-Tangible-Asset is 24.07% 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 ITC (LUX:ITC) Overvalued in 2026?
Based on GuruFocus' analysis, ITC stock appears to be undervalued.
The current stock price of $5.50 is trading 39.3% below its estimated GF Value™ of $9.06.
Key valuation signals for LUX:ITC:
Return-on-Tangible-Asset: 24.07% (15% above median its 10-year median of 20.85)
GF Value™: $9.06 vs. price of $5.50 (39.3% below fair value)
Industry Position: 128.8% above the Tobacco Products median (#11 of 49)
No single metric tells the full story. See the LUX:ITC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITC Ltd is an Indian conglomerate that predominantly operates in the consumer goods space, particularly cigarettes. The company operates in three main business segments: Fast Moving Consumer Goods; Paperboards, Paper, and Packaging; and Agri-Business. The company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.
82GF Score
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