Ramsay Health CareASX:RHC -1.02%87 Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus rates ASX:RHC with a GF Score™ of 87/100 and a GF Value™ of A$50.75 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 582 Healthcare Providers & Services companies, Ramsay Health Care ranks better than 99.83% 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. Ramsay Health Care's annualized net income for the quarter that ended in Dec. 2025 was A$321 Mil. Ramsay Health Care's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$-1,340 Mil. Therefore, Ramsay Health Care's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for Ramsay Health Care's Return-on-Tangible-Equity or its related term are showing as below:
ASX:RHC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 234.45 Med: 359.57 Max: 484.68
Current: Negative Tangible Equity
During the past 13 years, Ramsay Health Care's highest Return-on-Tangible-Equity was 484.68%. The lowest was 234.45%. And the median was 359.57%.
ASX:RHC's Return-on-Tangible-Equity is ranked better than 99.83% of 582
companies
in the Healthcare Providers & Services industry
Industry Median: 9.965
vs ASX:RHC: Negative Tangible Equity
Ramsay Health Care (ASX:RHC) 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.
Ramsay Health Care Return-on-Tangible-Equity Related Terms
Ramsay Health Care Return-on-Tangible-Equity Historical Data
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The historical data trend for Ramsay Health Care'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.
Ramsay Health Care Return-on-Tangible-Equity Chart
ASX:RHC vs HCA, THC, DVA: Return-on-Tangible-Equity Comparison
For the Medical Care Facilities subindustry, Ramsay Health Care'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.
Ramsay Health Care Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ramsay Health Care'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 Negative Tangible Equity% mean?
Ramsay Health Care (ASX:RHC) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Ramsay Health Care and its competitors. Over the past decade, Ramsay Health Care's Return-on-Tangible-Equity has ranged from 234.45 to 484.68. According to the industry distribution chart, Ramsay Health Care ranks #1 out of 582 companies in the Healthcare Providers & Services industry, placing it in the top 0.2%.
Is Ramsay Health Care's Return-on-Tangible-Equity too high?
Ramsay Health Care's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 234.45 to a high of 484.68. Based on the distribution chart, Ramsay Health Care ranks #1 out of 582 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Ramsay Health Care has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ramsay Health Care's Return-on-Tangible-Equity compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Ramsay Health Care ranks #1 out of 582 companies for Return-on-Tangible-Equity. This places Ramsay Health Care in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.97. Historically, Ramsay Health Care's own Return-on-Tangible-Equity has ranged from 234.45 to 484.68 over the past decade. 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 Healthcare Providers & Services company?
The median Return-on-Tangible-Equity among Healthcare Providers & Services companies is 9.97, based on 582 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. 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 Ramsay Health Care and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Equity is 9.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramsay Health Care's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramsay Health Care stock overvalued right now?
Based on GuruFocus' analysis, Ramsay Health Care (ASX:RHC) is currently considered Modestly Undervalued. The stock's GF Value™ is A$50.75, compared to a current price of A$43.53 — trading 14.2% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Ramsay Health Care's overall GF Score™ is 87/100 with 9 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 Ramsay Health Care (ASX:RHC), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Ramsay Health Care (ASX:RHC) Overvalued in 2026?
Based on GuruFocus' analysis, Ramsay Health Care stock appears to be undervalued.
The current stock price of A$43.53 is trading 14.2% below its estimated GF Value™ of A$50.75.
GuruFocus considers Ramsay Health Care to be Modestly Undervalued.
No single metric tells the full story. See the ASX:RHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramsay Health Care is one of the largest private healthcare providers in the world, with more than 500 sites across about eight countries. The key markets in which it operates are Australia, France, the UK, and Sweden. It is the largest private hospital group in each of these markets except for the UK, where it is the largest independent supplier to the NHS. Ramsay Santé, which operates the European regions other than the UK, is a 53%-owned subsidiary of Ramsay Health Care. The company typically earns about two-thirds of consolidated earnings in Australia. Ramsay Health Care undertakes both private and publicly funded healthcare.
87GF Score
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