NVIDIANVDA -1.25%95 Return-on-Tangible-Equity is 153.17% as of Apr. 2026, which is 192% above its 10-year median of 52.49. GuruFocus rates NVDA with a GF Score™ of 95/100 and a GF Value™ of $352.41 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 985 Semiconductors companies, NVIDIA ranks better than 98.07% 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. NVIDIA's annualized net income for the quarter that ended in Apr. 2026 was $233,284 Mil. NVIDIA's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $152,308 Mil. Therefore, NVIDIA's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 153.17%.
The historical rank and industry rank for NVIDIA's Return-on-Tangible-Equity or its related term are showing as below:
NVDA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 24.28 Med: 52.49 Max: 135.84
Current: 135.84
During the past 13 years, NVIDIA's highest Return-on-Tangible-Equity was 135.84%. The lowest was 24.28%. And the median was 52.49%.
NVDA's Return-on-Tangible-Equity is ranked better than 98.07% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs NVDA: 135.84
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.
NVIDIA Return-on-Tangible-Equity Related Terms
NVIDIA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NVIDIA'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.
NVDA vs AVGO, MU, AMD: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, NVIDIA'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.
NVIDIA Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NVIDIA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NVIDIA'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 (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 153.17% mean?
NVIDIA (NVDA) has a Return-on-Tangible-Equity of 153.17% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NVIDIA and its competitors. This is 192% above median its historical median of 52.49. Over the past decade, NVIDIA's Return-on-Tangible-Equity has ranged from 24.28 to 135.84. According to the industry distribution chart, NVIDIA ranks #19 out of 985 companies in the Semiconductors industry, placing it in the top 1.9%.
Is NVIDIA's Return-on-Tangible-Equity too high?
NVIDIA's current Return-on-Tangible-Equity of 153.17% is 192% above median its 10-year median of 52.49. Over the past 10 years, this metric has ranged from a low of 24.28 to a high of 135.84. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. NVIDIA's value of 153.17% is 2851.3% above this industry median. Based on the distribution chart, NVIDIA ranks #19 out of 985 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, NVIDIA has a GF Score™ of 95/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NVIDIA's Return-on-Tangible-Equity compare to AVGO and MU?
According to the Semiconductors industry distribution chart, NVIDIA ranks #19 out of 985 companies for Return-on-Tangible-Equity. This places NVIDIA in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.19. NVIDIA's value of 153.17% is 2851.3% above this benchmark. Historically, NVIDIA's own Return-on-Tangible-Equity has ranged from 24.28 to 135.84 over the past decade. While the company's 10-year median is 52.49 vs. the industry median of 5.19, NVIDIA 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 Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 985 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. NVIDIA's current Return-on-Tangible-Equity of 153.17% is 2851.3% 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 NVIDIA and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NVIDIA's current Return-on-Tangible-Equity is 153.17%, which is 192% above median its own 10-year median of 52.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NVIDIA stock overvalued right now?
Based on GuruFocus' analysis, NVIDIA (NVDA) is currently considered Possible Value Trap. The stock's GF Value™ is $352.41, compared to a current price of $197.58 — trading 43.9% below its estimated fair value. The current Return-on-Tangible-Equity is 153.17%, which is 192% above median its 10-year median of 52.49 and 2851.3% above the Semiconductors industry median of 5.19. NVIDIA's overall GF Score™ is 95/100 with 3 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 NVIDIA (NVDA), the current Return-on-Tangible-Equity is 153.17% as of Apr. 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 NVIDIA (NVDA) Overvalued in 2026?
Based on GuruFocus' analysis, NVIDIA stock appears to be undervalued.
The current stock price of $197.58 is trading 43.9% below its estimated GF Value™ of $352.41.
GuruFocus considers NVIDIA to be Possible Value Trap.
Key valuation signals for NVDA:
Return-on-Tangible-Equity: 153.17% (192% above median its 10-year median of 52.49)
GF Value™: $352.41 vs. price of $197.58 (43.9% below fair value)
Industry Position: 2851.3% above the Semiconductors median (#19 of 985)
No single metric tells the full story. See the NVDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence to run large language models. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.
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