Abu Dhabi Commercial BankADX:ADCB +4.28%61 Return-on-Tangible-Equity is 16.89% as of Mar. 2026, which is 23% above its 10-year median of 13.75. GuruFocus rates ADX:ADCB with a GF Score™ of 61/100 and a GF Value™ of د.إ13.46 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,523 Banks companies, Abu Dhabi Commercial Bank ranks better than 81.94% 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. Abu Dhabi Commercial Bank's annualized net income for the quarter that ended in Mar. 2026 was د.إ13,444 Mil. Abu Dhabi Commercial Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was د.إ79,593 Mil. Therefore, Abu Dhabi Commercial Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.89%.
The historical rank and industry rank for Abu Dhabi Commercial Bank's Return-on-Tangible-Equity or its related term are showing as below:
ADX:ADCB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.82 Med: 13.75 Max: 16.9
Current: 16.9
During the past 13 years, Abu Dhabi Commercial Bank's highest Return-on-Tangible-Equity was 16.90%. The lowest was 7.82%. And the median was 13.75%.
ADX:ADCB's Return-on-Tangible-Equity is ranked better than 81.94% of 1523
companies
in the Banks industry
Industry Median: 11.19
vs ADX:ADCB: 16.90
Abu Dhabi Commercial Bank (ADX:ADCB) Return-on-Tangible-Equity Explanation
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.
Abu Dhabi Commercial Bank Return-on-Tangible-Equity Related Terms
Abu Dhabi Commercial Bank Return-on-Tangible-Equity Historical Data
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The historical data trend for Abu Dhabi Commercial Bank'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.
Abu Dhabi Commercial Bank Return-on-Tangible-Equity Chart
Abu Dhabi Commercial Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, Abu Dhabi Commercial Bank'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.
Abu Dhabi Commercial Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Abu Dhabi Commercial Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Abu Dhabi Commercial Bank'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 16.89% mean?
Abu Dhabi Commercial Bank (ADX:ADCB) has a Return-on-Tangible-Equity of 16.89% 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 Abu Dhabi Commercial Bank and its competitors. This is 23% above median its historical median of 13.75. Over the past decade, Abu Dhabi Commercial Bank's Return-on-Tangible-Equity has ranged from 7.82 to 16.90. According to the industry distribution chart, Abu Dhabi Commercial Bank ranks #275 out of 1523 companies in the Banks industry, placing it in the top 18.1%.
Is Abu Dhabi Commercial Bank's Return-on-Tangible-Equity too high?
Abu Dhabi Commercial Bank's current Return-on-Tangible-Equity of 16.89% is 23% above median its 10-year median of 13.75. Over the past 10 years, this metric has ranged from a low of 7.82 to a high of 16.90. The Banks industry median Return-on-Tangible-Equity is 11.19. Abu Dhabi Commercial Bank's value of 16.89% is 50.9% above this industry median. Based on the distribution chart, Abu Dhabi Commercial Bank ranks #275 out of 1523 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Abu Dhabi Commercial Bank has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Abu Dhabi Commercial Bank's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, Abu Dhabi Commercial Bank ranks #275 out of 1523 companies for Return-on-Tangible-Equity. This places Abu Dhabi Commercial Bank in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.19. Abu Dhabi Commercial Bank's value of 16.89% is 50.9% above this benchmark. Historically, Abu Dhabi Commercial Bank's own Return-on-Tangible-Equity has ranged from 7.82 to 16.90 over the past decade. While the company's 10-year median is 13.75 vs. the industry median of 11.19, Abu Dhabi Commercial Bank 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,523 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. Abu Dhabi Commercial Bank's current Return-on-Tangible-Equity of 16.89% is 50.9% 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 Abu Dhabi Commercial Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abu Dhabi Commercial Bank's current Return-on-Tangible-Equity is 16.89%, which is 23% above median its own 10-year median of 13.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abu Dhabi Commercial Bank stock overvalued right now?
Based on GuruFocus' analysis, Abu Dhabi Commercial Bank (ADX:ADCB) is currently considered Modestly Overvalued. The stock's GF Value™ is د.إ13.46, compared to a current price of د.إ15.10 — trading 12.2% above its estimated fair value. The current Return-on-Tangible-Equity is 16.89%, which is 23% above median its 10-year median of 13.75 and 50.9% above the Banks industry median of 11.19. Abu Dhabi Commercial Bank's overall GF Score™ is 61/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Abu Dhabi Commercial Bank (ADX:ADCB), the current Return-on-Tangible-Equity is 16.89% 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 Abu Dhabi Commercial Bank (ADX:ADCB) Overvalued in 2026?
Based on GuruFocus' analysis, Abu Dhabi Commercial Bank stock appears to be overvalued.
The current stock price of د.إ15.10 is trading 12.2% above its estimated GF Value™ of د.إ13.46.
GuruFocus considers Abu Dhabi Commercial Bank to be Modestly Overvalued.
Key valuation signals for ADX:ADCB:
Return-on-Tangible-Equity: 16.89% (23% above median its 10-year median of 13.75)
GF Value™: د.إ13.46 vs. price of د.إ15.10 (12.2% above fair value)
Industry Position: 50.9% above the Banks median (#275 of 1523)
No single metric tells the full story. See the ADX:ADCB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abu Dhabi Commercial Bank is principally engaged in the business of retail, commercial and Islamic banking, and provision of other financial services. Its segments include Retail banking, Private banking, Corporate and investment banking, Investments and treasury, and Others. The majority of the revenue is derived from Corporate and investment banking segment that comprises of business banking, cash management, trade finance, corporate finance, small and medium enterprise financing, investment banking, Islamic financing, infrastructure and asset finance, government and public enterprises. It includes loans, deposits and other transactions and balances with corporate customers.
61GF Score
Get the complete analysis for ADX:ADCB
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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