Astera LabsALAB +5.93%15 Return-on-Tangible-Equity is 23.20% as of Mar. 2026. GuruFocus rates ALAB with a GF Score™ of 15/100. The stock has 6 warning signs investors should review. Among 985 Semiconductors companies, Astera Labs ranks better than 85.89% 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. Astera Labs's annualized net income for the quarter that ended in Mar. 2026 was $321 Mil. Astera Labs's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,385 Mil. Therefore, Astera Labs's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.20%.
The historical rank and industry rank for Astera Labs's Return-on-Tangible-Equity or its related term are showing as below:
ALAB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -19.24 Med: -0.21 Max: 21.52
Current: 21.52
During the past 4 years, Astera Labs's highest Return-on-Tangible-Equity was 21.52%. The lowest was -19.24%. And the median was -0.21%.
ALAB's Return-on-Tangible-Equity is ranked better than 85.89% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs ALAB: 21.52
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.
Astera Labs Return-on-Tangible-Equity Related Terms
Astera Labs Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Astera Labs'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.
ALAB vs MPWR, NXPI, MCHP: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, Astera Labs'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.
Astera Labs Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Astera Labs's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Astera Labs'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 23.20% mean?
Astera Labs (ALAB) has a Return-on-Tangible-Equity of 23.20% 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 Astera Labs and its competitors. According to the industry distribution chart, Astera Labs ranks #139 out of 985 companies in the Semiconductors industry, placing it in the top 14.1%.
Is Astera Labs' Return-on-Tangible-Equity too high?
Astera Labs' current Return-on-Tangible-Equity is 23.20%. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. Astera Labs' value of 23.20% is 347% above this industry median. Based on the distribution chart, Astera Labs ranks #139 out of 985 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Astera Labs has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Astera Labs' Return-on-Tangible-Equity compare to MPWR and NXPI?
According to the Semiconductors industry distribution chart, Astera Labs ranks #139 out of 985 companies for Return-on-Tangible-Equity. This places Astera Labs in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.19. Astera Labs' value of 23.20% is 347% above this benchmark. 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. Astera Labs's current Return-on-Tangible-Equity of 23.20% is 347% 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 Astera Labs 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. Astera Labs's current Return-on-Tangible-Equity is 23.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Astera Labs stock overvalued right now?
Astera Labs (ALAB) has a current Return-on-Tangible-Equity of 23.20%. The current Return-on-Tangible-Equity is 23.20% and 347% above the Semiconductors industry median of 5.19. Astera Labs' overall GF Score™ is 15/100 with 6 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 Astera Labs (ALAB), the current Return-on-Tangible-Equity is 23.20% 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.
Astera Labs Inc designs and delivers semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform integrates semiconductor technology, microcontrollers, sensors, and software to enhance performance, scalability, and data management. The company offers products such as integrated circuits (ICs), boards, and modules, catering to hyperscalers and system OEMs. The company's solutions focus on data, network, and memory management in AI-driven platforms. Geographically, the company operates in Singapore, China, Taiwan, and United States, of which maximum revenue is derived from United States.
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