EquinixEQIX -0.67%91 Return-on-Tangible-Equity is 23.77% as of Mar. 2026, which is 23% above its 10-year median of 19.39. GuruFocus rates EQIX with a GF Score™ of 91/100 and a GF Value™ of $914.08 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 932 REITs companies, Equinix ranks better than 93.03% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Equinix's annualized net income for the quarter that ended in Mar. 2026 was $1,660 Mil. Equinix's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $6,983 Mil. Therefore, Equinix's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.77%.
The historical rank and industry rank for Equinix's Return-on-Tangible-Equity or its related term are showing as below:
EQIX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.97 Med: 19.39 Max: 711.85
Current: 20.65
During the past 13 years, Equinix's highest Return-on-Tangible-Equity was 711.85%. The lowest was 11.97%. And the median was 19.39%.
EQIX's Return-on-Tangible-Equity is ranked better than 93.03% of 932
companies
in the REITs industry
Industry Median: 6.29
vs EQIX: 20.65
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Equinix Return-on-Tangible-Equity Related Terms
Equinix Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Equinix's Return-on-Tangible-Equity 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.
EQIX vs AMT, DLR, CCI: Return-on-Tangible-Equity Comparison
For the REIT - Specialty subindustry, Equinix's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Equinix Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Equinix's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Equinix's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 23.77% mean?
Equinix (EQIX) has a Return-on-Tangible-Equity of 23.77% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Equinix and its competitors. This is 23% above median its historical median of 19.39. Over the past decade, Equinix's Return-on-Tangible-Equity has ranged from 11.97 to 711.85. According to the industry distribution chart, Equinix ranks #65 out of 932 companies in the REITs industry, placing it in the top 7%.
Is Equinix's Return-on-Tangible-Equity too high?
Equinix's current Return-on-Tangible-Equity of 23.77% is 23% above median its 10-year median of 19.39. Over the past 10 years, this metric has ranged from a low of 11.97 to a high of 711.85. The REITs industry median Return-on-Tangible-Equity is 6.29. Equinix's value of 23.77% is 277.9% above this industry median. Based on the distribution chart, Equinix ranks #65 out of 932 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Equinix has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Equinix's Return-on-Tangible-Equity compare to AMT and DLR?
According to the REITs industry distribution chart, Equinix ranks #65 out of 932 companies for Return-on-Tangible-Equity. This places Equinix in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.29. Equinix's value of 23.77% is 277.9% above this benchmark. Historically, Equinix's own Return-on-Tangible-Equity has ranged from 11.97 to 711.85 over the past decade. While the company's 10-year median is 19.39 vs. the industry median of 6.29, Equinix 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-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.29, based on 932 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Equinix's current Return-on-Tangible-Equity of 23.77% is 277.9% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Equinix and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Equinix's current Return-on-Tangible-Equity is 23.77%, which is 23% above median its own 10-year median of 19.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Equinix stock overvalued right now?
Based on GuruFocus' analysis, Equinix (EQIX) is currently considered Modestly Overvalued. The stock's GF Value™ is $914.08, compared to a current price of $1,087.61 — trading 19% above its estimated fair value. The current Return-on-Tangible-Equity is 23.77%, which is 23% above median its 10-year median of 19.39 and 277.9% above the REITs industry median of 6.29. Equinix's overall GF Score™ is 91/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Equinix (EQIX), the current Return-on-Tangible-Equity is 23.77% 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 Equinix (EQIX) Overvalued in 2026?
Based on GuruFocus' analysis, Equinix stock appears to be overvalued.
The current stock price of $1,087.61 is trading 19% above its estimated GF Value™ of $914.08.
GuruFocus considers Equinix to be Modestly Overvalued.
Key valuation signals for EQIX:
Return-on-Tangible-Equity: 23.77% (23% above median its 10-year median of 19.39)
GF Value™: $914.08 vs. price of $1,087.61 (19% above fair value)
Industry Position: 277.9% above the REITs median (#65 of 932)
No single metric tells the full story. See the EQIX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Equinix is one of the leading providers of cloud- and carrier-neutral data centers, offering colocation and interconnection services to hyperscalers and businesses. Equinix operates 270 properties in 77 metropolitan areas across 36 countries, serving over 10,000 customers. About 70% of Equinix's revenue comes from renting physical space, which allows hyperscalers and other clients to store servers, data storage, and networking equipment. The other 30% of revenue is generated primarily through interconnection services (20%) and other managed services (10%).
91GF Score
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