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Ericsson Nikola Tesla DDZAG:ERNT +0.98%78 Return-on-Tangible-Asset is 11.43% as of Jun. 2026, which is 5% above its 10-year median of 10.85. GuruFocus rates ZAG:ERNT with a GF Score™ of 78/100 and a GF Value™ of €180.66 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 369 Telecommunication Services companies, Ericsson Nikola Tesla DD ranks better than 83.47% 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. Ericsson Nikola Tesla DD's annualizedNet Income for the quarter that ended in Jun. 2026 was €19.4 Mil. Ericsson Nikola Tesla DD's average total tangible assets for the quarter that ended in Jun. 2026 was €169.3 Mil. Therefore, Ericsson Nikola Tesla DD's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 11.43%.
The historical rank and industry rank for Ericsson Nikola Tesla DD's Return-on-Tangible-Asset or its related term are showing as below:
ZAG:ERNT'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 8.41 Med: 10.85 Max: 16.25
Current: 11.45
During the past 13 years, Ericsson Nikola Tesla DD's highest Return-on-Tangible-Asset was 16.25%. The lowest was 8.41%. And the median was 10.85%.
ZAG:ERNT's Return-on-Tangible-Asset is ranked better than 83.47% of 369
companies
in the Telecommunication Services industry
Industry Median: 3.6
vs ZAG:ERNT: 11.45
Ericsson Nikola Tesla DD (ZAG:ERNT) Return-on-Tangible-Asset Explanation
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.
Ericsson Nikola Tesla DD Return-on-Tangible-Asset Related Terms
Ericsson Nikola Tesla DD Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Ericsson Nikola Tesla DD'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.
Ericsson Nikola Tesla DD Return-on-Tangible-Asset Chart
ZAG:ERNT vs VZ, TMUS, T: Return-on-Tangible-Asset Comparison
For the Telecom Services subindustry, Ericsson Nikola Tesla DD'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.
Ericsson Nikola Tesla DD Return-on-Tangible-Asset vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Ericsson Nikola Tesla DD's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Ericsson Nikola Tesla DD'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 11.43% mean?
Ericsson Nikola Tesla DD (ZAG:ERNT) has a Return-on-Tangible-Asset of 11.43% 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 Ericsson Nikola Tesla DD and its competitors. This is near median its historical median of 10.85. Over the past decade, Ericsson Nikola Tesla DD's Return-on-Tangible-Asset has ranged from 8.41 to 16.25. According to the industry distribution chart, Ericsson Nikola Tesla DD ranks #61 out of 369 companies in the Telecommunication Services industry, placing it in the top 16.5%.
Is Ericsson Nikola Tesla DD's Return-on-Tangible-Asset too high?
Ericsson Nikola Tesla DD's current Return-on-Tangible-Asset of 11.43% is near median its 10-year median of 10.85. Over the past 10 years, this metric has ranged from a low of 8.41 to a high of 16.25. The Telecommunication Services industry median Return-on-Tangible-Asset is 3.60. Ericsson Nikola Tesla DD's value of 11.43% is 217.5% above this industry median. Based on the distribution chart, Ericsson Nikola Tesla DD ranks #61 out of 369 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Ericsson Nikola Tesla DD has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ericsson Nikola Tesla DD's Return-on-Tangible-Asset compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Ericsson Nikola Tesla DD ranks #61 out of 369 companies for Return-on-Tangible-Asset. This places Ericsson Nikola Tesla DD in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.60. Ericsson Nikola Tesla DD's value of 11.43% is 217.5% above this benchmark. Historically, Ericsson Nikola Tesla DD's own Return-on-Tangible-Asset has ranged from 8.41 to 16.25 over the past decade. While the company's 10-year median is 10.85 vs. the industry median of 3.60, Ericsson Nikola Tesla DD 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 Telecommunication Services company?
The median Return-on-Tangible-Asset among Telecommunication Services companies is 3.60, based on 369 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. Ericsson Nikola Tesla DD's current Return-on-Tangible-Asset of 11.43% is 217.5% 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 Ericsson Nikola Tesla DD and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Asset is 3.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ericsson Nikola Tesla DD's current Return-on-Tangible-Asset is 11.43%, which is near median its own 10-year median of 10.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ericsson Nikola Tesla DD stock overvalued right now?
Based on GuruFocus' analysis, Ericsson Nikola Tesla DD (ZAG:ERNT) is currently considered Modestly Overvalued. The stock's GF Value™ is €180.66, compared to a current price of €206.00 — trading 14% above its estimated fair value. The current Return-on-Tangible-Asset is 11.43%, which is near median its 10-year median of 10.85 and 217.5% above the Telecommunication Services industry median of 3.60. Ericsson Nikola Tesla DD's overall GF Score™ is 78/100 with 4 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 Ericsson Nikola Tesla DD (ZAG:ERNT), the current Return-on-Tangible-Asset is 11.43% 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 Ericsson Nikola Tesla DD (ZAG:ERNT) Overvalued in 2026?
Based on GuruFocus' analysis, Ericsson Nikola Tesla DD stock appears to be overvalued.
The current stock price of €206.00 is trading 14% above its estimated GF Value™ of €180.66.
GuruFocus considers Ericsson Nikola Tesla DD to be Modestly Overvalued.
Key valuation signals for ZAG:ERNT:
Return-on-Tangible-Asset: 11.43% (near median its 10-year median of 10.85)
GF Value™: €180.66 vs. price of €206.00 (14% above fair value)
Industry Position: 217.5% above the Telecommunication Services median (#61 of 369)
No single metric tells the full story. See the ZAG:ERNT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ericsson Nikola Tesla DD is a provider of communication products and services and ICT solutions related to healthcare, national and public safety, state administration, transport, utilities, and multimedia communication. The company's principal activities include research and development of telecommunications software and services, design, testing, and integration of total communications solutions, managed services, supply, and maintenance of communications solutions and ICT solutions, towards customers within the Ericsson Group, customers in the Republic of Croatia, and Bosnia and Herzegovina, and several customers in Central and Eastern Europe. The company operates in four segments Networks, Digital Services, Managed Services, and Others. It earns maximum revenue from Networks segment.
78GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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