Advanced Braking TechnologyASX:ABV 68 Return-on-Tangible-Equity is 10.14% as of Dec. 2025, which is 7% below its 10-year median of 10.94. GuruFocus rates ASX:ABV with a GF Score™ of 68/100 and a GF Value™ of A$0.11 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Advanced Braking Technology ranks better than 83.11% 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. Advanced Braking Technology's annualized net income for the quarter that ended in Dec. 2025 was A$1.08 Mil. Advanced Braking Technology's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$10.61 Mil. Therefore, Advanced Braking Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.14%.
The historical rank and industry rank for Advanced Braking Technology's Return-on-Tangible-Equity or its related term are showing as below:
ASX:ABV'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -332.01 Med: 10.94 Max: 26.21
Current: 19.73
During the past 13 years, Advanced Braking Technology's highest Return-on-Tangible-Equity was 26.21%. The lowest was -332.01%. And the median was 10.94%.
ASX:ABV's Return-on-Tangible-Equity is ranked better than 83.11% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.51
vs ASX:ABV: 19.73
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.
Advanced Braking Technology Return-on-Tangible-Equity Related Terms
Advanced Braking Technology Return-on-Tangible-Equity Historical Data
* 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.
ASX:ABV vs ORLY, AZO, GPC: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Advanced Braking Technology'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.
Advanced Braking Technology Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advanced Braking Technology's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Advanced Braking Technology'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.14% mean?
Advanced Braking Technology (ASX:ABV) has a Return-on-Tangible-Equity of 10.14% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Advanced Braking Technology and its competitors. This is near median its historical median of 10.94. According to the industry distribution chart, Advanced Braking Technology ranks #217 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 16.9%.
Is Advanced Braking Technology's Return-on-Tangible-Equity too high?
Advanced Braking Technology's current Return-on-Tangible-Equity of 10.14% is near median its 10-year median of 10.94. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.51. Advanced Braking Technology's value of 10.14% is 35% above this industry median. Based on the distribution chart, Advanced Braking Technology ranks #217 out of 1285 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Advanced Braking Technology has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Braking Technology's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Advanced Braking Technology ranks #217 out of 1285 companies for Return-on-Tangible-Equity. This places Advanced Braking Technology in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.51. Advanced Braking Technology's value of 10.14% is 35% above this benchmark. While the company's 10-year median is 10.94 vs. the industry median of 7.51, Advanced Braking Technology 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.51, based on 1,285 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. Advanced Braking Technology's current Return-on-Tangible-Equity of 10.14% is 35% 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 Advanced Braking Technology and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Braking Technology's current Return-on-Tangible-Equity is 10.14%, which is near median its own 10-year median of 10.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Braking Technology stock overvalued right now?
Based on GuruFocus' analysis, Advanced Braking Technology (ASX:ABV) is currently considered Fairly Valued. The stock's GF Value™ is A$0.11, compared to a current price of A$0.11 — trading right at its estimated fair value. The current Return-on-Tangible-Equity is 10.14%, which is near median its 10-year median of 10.94 and 35% above the Vehicles & Parts industry median of 7.51. Advanced Braking Technology's overall GF Score™ is 68/100 with 2 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 Advanced Braking Technology (ASX:ABV), the current Return-on-Tangible-Equity is 10.14% as of Dec. 2025. 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 Advanced Braking Technology (ASX:ABV) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Braking Technology stock appears to be undervalued.
The current stock price of A$0.11 is trading 0% below its estimated GF Value™ of A$0.11.
GuruFocus considers Advanced Braking Technology to be Fairly Valued.
Key valuation signals for ASX:ABV:
Return-on-Tangible-Equity: 10.14% (near median its 10-year median of 10.94)
GF Value™: A$0.11 vs. price of A$0.11 (0% below fair value)
Industry Position: 35% above the Vehicles & Parts median (#217 of 1285)
No single metric tells the full story. See the ASX:ABV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Braking Technology Ltd is an Australian firm engaged in the commercialization, research, development, and manufacture of the ABT Failsafe Brakes, ABT Failsafe Emergency Driveline Brakes, Terra Dura Brakes, and associated braking systems. It develops its product portfolio for a diverse range of industries such as mining, defense, civil construction, and waste management industries.
68GF Score
Get the complete analysis for ASX:ABV
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:ABV has been successfully added to your 
