Commonwealth Bank of AustraliaASX:STWIYA 65 Return-on-Tangible-Equity is 15.37% as of Dec. 2025, which is 1% above its 10-year median of 15.25. GuruFocus rates ASX:STWIYA with a GF Score™ of 65/100. The stock has 2 warning signs investors should review. Among 1,525 Banks companies, Commonwealth Bank of Australia ranks better than 74.43% 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. Commonwealth Bank of Australia's annualized net income for the quarter that ended in Dec. 2025 was A$10,734.00 Mil. Commonwealth Bank of Australia's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$69,815.00 Mil. Therefore, Commonwealth Bank of Australia's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 15.37%.
The historical rank and industry rank for Commonwealth Bank of Australia's Return-on-Tangible-Equity or its related term are showing as below:
ASX:STWIYA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.3 Med: 15.25 Max: 20.03
Current: 14.99
During the past 13 years, Commonwealth Bank of Australia's highest Return-on-Tangible-Equity was 20.03%. The lowest was 14.30%. And the median was 15.25%.
ASX:STWIYA's Return-on-Tangible-Equity is ranked better than 74.43% of 1525
companies
in the Banks industry
Industry Median: 11.21
vs ASX:STWIYA: 14.99
Commonwealth Bank of Australia (ASX:STWIYA) 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.
Commonwealth Bank of Australia Return-on-Tangible-Equity Related Terms
Commonwealth Bank of Australia 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.
Commonwealth Bank of Australia Return-on-Tangible-Equity Chart
ASX:STWIYA vs JPM, BAC, WFC: Return-on-Tangible-Equity Comparison
For the Banks - Diversified subindustry, Commonwealth Bank of Australia'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.
Commonwealth Bank of Australia Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Commonwealth Bank of Australia's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Commonwealth Bank of Australia'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 15.37% mean?
Commonwealth Bank of Australia (ASX:STWIYA) has a Return-on-Tangible-Equity of 15.37% 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 Commonwealth Bank of Australia and its competitors. This is near median its historical median of 15.25. Over the past decade, Commonwealth Bank of Australia's Return-on-Tangible-Equity has ranged from 14.30 to 20.03. According to the industry distribution chart, Commonwealth Bank of Australia ranks #390 out of 1525 companies in the Banks industry, placing it in the top 25.6%.
Is Commonwealth Bank of Australia's Return-on-Tangible-Equity too high?
Commonwealth Bank of Australia's current Return-on-Tangible-Equity of 15.37% is near median its 10-year median of 15.25. Over the past 10 years, this metric has ranged from a low of 14.30 to a high of 20.03. The Banks industry median Return-on-Tangible-Equity is 11.21. Commonwealth Bank of Australia's value of 15.37% is 37.1% above this industry median. Based on the distribution chart, Commonwealth Bank of Australia ranks #390 out of 1525 companies in the Banks industry, which is above the industry midpoint. Overall, Commonwealth Bank of Australia has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Commonwealth Bank of Australia's Return-on-Tangible-Equity compare to JPM and BAC?
According to the Banks industry distribution chart, Commonwealth Bank of Australia ranks #390 out of 1525 companies for Return-on-Tangible-Equity. This puts Commonwealth Bank of Australia in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.21. Commonwealth Bank of Australia's value of 15.37% is 37.1% above this benchmark. Historically, Commonwealth Bank of Australia's own Return-on-Tangible-Equity has ranged from 14.30 to 20.03 over the past decade. While the company's 10-year median is 15.25 vs. the industry median of 11.21, Commonwealth Bank of Australia 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 11.21, based on 1,525 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. Commonwealth Bank of Australia's current Return-on-Tangible-Equity of 15.37% is 37.1% 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 Commonwealth Bank of Australia and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Commonwealth Bank of Australia's current Return-on-Tangible-Equity is 15.37%, which is near median its own 10-year median of 15.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Commonwealth Bank of Australia stock overvalued right now?
Commonwealth Bank of Australia (ASX:STWIYA) has a current Return-on-Tangible-Equity of 15.37%. The current Return-on-Tangible-Equity is 15.37%, which is near median its 10-year median of 15.25 and 37.1% above the Banks industry median of 11.21. Commonwealth Bank of Australia's overall GF Score™ is 65/100 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 Commonwealth Bank of Australia (ASX:STWIYA), the current Return-on-Tangible-Equity is 15.37% 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.
Commonwealth Bank of Australia Business Description
Commonwealth Bank is Australia's largest bank with operations spanning Australia, New Zealand, and Asia. Its core business is the provision of retail, business, and institutional banking services. The bank has emphasized its focus on banking in recent years with a numbers of asset divestments in wealth management and insurance.
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