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Varun BeveragesNSE:VBL +1.60%98 Return-on-Tangible-Asset is 21.85% as of Jun. 2026, which is 186% above its 10-year median of 7.64. GuruFocus rates NSE:VBL with a GF Score™ of 98/100 and a GF Value™ of ₹592.73 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 117 Beverages - Non-Alcoholic companies, Varun Beverages ranks better than 78.63% 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. Varun Beverages's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹60,832 Mil. Varun Beverages's average total tangible assets for the quarter that ended in Jun. 2026 was ₹278,409 Mil. Therefore, Varun Beverages's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 21.85%.
The historical rank and industry rank for Varun Beverages's Return-on-Tangible-Asset or its related term are showing as below:
NSE:VBL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.98 Med: 7.64 Max: 16.02
Current: 13.53
During the past 11 years, Varun Beverages's highest Return-on-Tangible-Asset was 16.02%. The lowest was 0.98%. And the median was 7.64%.
NSE:VBL's Return-on-Tangible-Asset is ranked better than 78.63% of 117
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 6.85
vs NSE:VBL: 13.53
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.
Varun Beverages Return-on-Tangible-Asset Related Terms
Varun Beverages Return-on-Tangible-Asset Historical Data
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The historical data trend for Varun Beverages'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.
NSE:VBL vs KO, PEP, MNST: Return-on-Tangible-Asset Comparison
For the Beverages - Non-Alcoholic subindustry, Varun Beverages'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.
Varun Beverages Return-on-Tangible-Asset vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Varun Beverages's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Varun Beverages'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 (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 21.85% mean?
Varun Beverages (NSE:VBL) has a Return-on-Tangible-Asset of 21.85% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Varun Beverages and its competitors. This is 186% above median its historical median of 7.64. Over the past decade, Varun Beverages' Return-on-Tangible-Asset has ranged from 0.98 to 16.02. According to the industry distribution chart, Varun Beverages ranks #25 out of 117 companies in the Beverages - Non-Alcoholic industry, placing it in the top 21.4%.
Is Varun Beverages' Return-on-Tangible-Asset too high?
Varun Beverages' current Return-on-Tangible-Asset of 21.85% is 186% above median its 10-year median of 7.64. Over the past 10 years, this metric has ranged from a low of 0.98 to a high of 16.02. The Beverages - Non-Alcoholic industry median Return-on-Tangible-Asset is 6.85. Varun Beverages' value of 21.85% is 219% above this industry median. Based on the distribution chart, Varun Beverages ranks #25 out of 117 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Varun Beverages has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varun Beverages' Return-on-Tangible-Asset compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Varun Beverages ranks #25 out of 117 companies for Return-on-Tangible-Asset. This places Varun Beverages in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 6.85. Varun Beverages' value of 21.85% is 219% above this benchmark. Historically, Varun Beverages' own Return-on-Tangible-Asset has ranged from 0.98 to 16.02 over the past decade. While the company's 10-year median is 7.64 vs. the industry median of 6.85, Varun Beverages 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 - Non-Alcoholic company?
The median Return-on-Tangible-Asset among Beverages - Non-Alcoholic companies is 6.85, based on 117 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. Varun Beverages's current Return-on-Tangible-Asset of 21.85% is 219% 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 Varun Beverages and its competitors. For the Beverages - Non-Alcoholic industry, the median Return-on-Tangible-Asset is 6.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current Return-on-Tangible-Asset is 21.85%, which is 186% above median its own 10-year median of 7.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varun Beverages stock overvalued right now?
Based on GuruFocus' analysis, Varun Beverages (NSE:VBL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹592.73, compared to a current price of ₹444.00 — trading 25.1% below its estimated fair value. The current Return-on-Tangible-Asset is 21.85%, which is 186% above median its 10-year median of 7.64 and 219% above the Beverages - Non-Alcoholic industry median of 6.85. Varun Beverages' overall GF Score™ is 98/100 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 Varun Beverages (NSE:VBL), the current Return-on-Tangible-Asset is 21.85% as of Jun. 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 Varun Beverages (NSE:VBL) Overvalued in 2026?
Based on GuruFocus' analysis, Varun Beverages stock appears to be undervalued.
The current stock price of ₹444.00 is trading 25.1% below its estimated GF Value™ of ₹592.73.
GuruFocus considers Varun Beverages to be Modestly Undervalued.
Key valuation signals for NSE:VBL:
Return-on-Tangible-Asset: 21.85% (186% above median its 10-year median of 7.64)
GF Value™: ₹592.73 vs. price of ₹444.00 (25.1% below fair value)
Industry Position: 219% above the Beverages - Non-Alcoholic median (#25 of 117)
No single metric tells the full story. See the NSE:VBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varun Beverages Ltd is engaged in manufacturing, selling, bottling, and distribution of beverages of the Pepsi brand in geographically pre-defined territories of India, Sri Lanka, Nepal, Zambia, Morocco, and Zimbabwe. Its brands include Seven-Up, Mountain Dew, Mirinda, Nimbooz, Tropicana Slice, and other related products. The firm generates a majority of its revenue within India.
98GF Score
Get the complete analysis for NSE:VBL
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