VentasVTR +2.02%79 Return-on-Tangible-Equity is 1.90% as of Mar. 2026, which is 43% below its 10-year median of 3.34. GuruFocus rates VTR with a GF Score™ of 79/100 and a GF Value™ of $69.98 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 932 REITs companies, Ventas ranks worse than 71.46% 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. Ventas's annualized net income for the quarter that ended in Mar. 2026 was $224 Mil. Ventas's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $11,770 Mil. Therefore, Ventas's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1.90%.
The historical rank and industry rank for Ventas's Return-on-Tangible-Equity or its related term are showing as below:
VTR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.5 Med: 3.34 Max: 14.1
Current: 2.34
During the past 13 years, Ventas's highest Return-on-Tangible-Equity was 14.10%. The lowest was -0.50%. And the median was 3.34%.
VTR's Return-on-Tangible-Equity is ranked worse than 71.46% of 932
companies
in the REITs industry
Industry Median: 6.29
vs VTR: 2.34
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.
Ventas Return-on-Tangible-Equity Related Terms
Ventas Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ventas'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.
VTR vs OHI, DOC, AHR: Return-on-Tangible-Equity Comparison
For the REIT - Healthcare Facilities subindustry, Ventas'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.
Ventas Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Ventas's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ventas'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 1.90% mean?
Ventas (VTR) has a Return-on-Tangible-Equity of 1.90% 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 Ventas and its competitors. This is 43% below median its historical median of 3.34. According to the industry distribution chart, Ventas ranks #666 out of 932 companies in the REITs industry, placing it in the top 71.5%.
Is Ventas' Return-on-Tangible-Equity too high?
Ventas' current Return-on-Tangible-Equity of 1.90% is 43% below median its 10-year median of 3.34. The REITs industry median Return-on-Tangible-Equity is 6.29. Ventas' value of 1.90% is 69.8% below this industry median. Based on the distribution chart, Ventas ranks #666 out of 932 companies in the REITs industry, which is below the industry midpoint. Overall, Ventas has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ventas' Return-on-Tangible-Equity compare to OHI and DOC?
According to the REITs industry distribution chart, Ventas ranks #666 out of 932 companies for Return-on-Tangible-Equity. This places Ventas in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.29. Ventas' value of 1.90% is 69.8% below this benchmark. While the company's 10-year median is 3.34 vs. the industry median of 6.29, Ventas has consistently been below 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. Ventas's current Return-on-Tangible-Equity of 1.90% is 69.8% below 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 Ventas 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. Ventas's current Return-on-Tangible-Equity is 1.90%, which is 43% below median its own 10-year median of 3.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ventas stock overvalued right now?
Based on GuruFocus' analysis, Ventas (VTR) is currently considered Modestly Overvalued. The stock's GF Value™ is $69.98, compared to a current price of $89.20 — trading 27.5% above its estimated fair value. The current Return-on-Tangible-Equity is 1.90%, which is 43% below median its 10-year median of 3.34 and 69.8% below the REITs industry median of 6.29. Ventas' overall GF Score™ is 79/100 with 8 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 Ventas (VTR), the current Return-on-Tangible-Equity is 1.90% 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 Ventas (VTR) Overvalued in 2026?
Based on GuruFocus' analysis, Ventas stock appears to be overvalued.
The current stock price of $89.20 is trading 27.5% above its estimated GF Value™ of $69.98.
GuruFocus considers Ventas to be Modestly Overvalued.
Key valuation signals for VTR:
Return-on-Tangible-Equity: 1.90% (43% below median its 10-year median of 3.34)
GF Value™: $69.98 vs. price of $89.20 (27.5% above fair value)
Industry Position: 69.8% below the REITs median (#666 of 932)
No single metric tells the full story. See the VTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ventas owns a diversified healthcare portfolio of almost 1,400 in-place properties spread across the senior housing, medical office, hospital, life science, and skilled nursing/post-acute care. The portfolio includes almost 100 properties in Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to the United States. The firm also owns mortgages and other loans, contributing about 1% of net operating income.
79GF Score
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