XReality GroupASX:XRG Return-on-Tangible-Equity is 34.04% as of Dec. 2025. The stock has 7 warning signs investors should review. Among 794 Travel & Leisure companies, XReality Group ranks worse than 93.83% 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. XReality Group's annualized net income for the quarter that ended in Dec. 2025 was A$1.47 Mil. XReality Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$4.31 Mil. Therefore, XReality Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 34.04%.
The historical rank and industry rank for XReality Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:XRG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -79.41 Med: -33.05 Max: 30.32
Current: -36.63
During the past 13 years, XReality Group's highest Return-on-Tangible-Equity was 30.32%. The lowest was -79.41%. And the median was -33.05%.
ASX:XRG's Return-on-Tangible-Equity is ranked worse than 93.83% of 794
companies
in the Travel & Leisure industry
Industry Median: 7.615
vs ASX:XRG: -36.63
XReality Group (ASX:XRG) 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.
XReality Group Return-on-Tangible-Equity Related Terms
XReality Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for XReality Group'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.
ASX:XRG vs AS, HAS, LTH: Return-on-Tangible-Equity Comparison
For the Leisure subindustry, XReality Group'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.
XReality Group Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, XReality Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where XReality Group'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 34.04% mean?
XReality Group (ASX:XRG) has a Return-on-Tangible-Equity of 34.04% 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 XReality Group and its competitors. According to the industry distribution chart, XReality Group ranks #745 out of 794 companies in the Travel & Leisure industry, placing it in the top 93.8%.
Is XReality Group's Return-on-Tangible-Equity too high?
XReality Group's current Return-on-Tangible-Equity is 34.04%. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.62. XReality Group's value of 34.04% is 347% above this industry median. Based on the distribution chart, XReality Group ranks #745 out of 794 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers.
How does XReality Group's Return-on-Tangible-Equity compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, XReality Group ranks #745 out of 794 companies for Return-on-Tangible-Equity. This places XReality Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.62. XReality Group's value of 34.04% 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.62, based on 794 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. XReality Group's current Return-on-Tangible-Equity of 34.04% 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 XReality Group and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XReality Group's current Return-on-Tangible-Equity is 34.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XReality Group stock overvalued right now?
Based on GuruFocus' analysis, XReality Group (ASX:XRG) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.04, compared to a current price of A$0.07 — trading 65% above its estimated fair value. The current Return-on-Tangible-Equity is 34.04% and 347% above the Travel & Leisure industry median of 7.62. 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 XReality Group (ASX:XRG), the current Return-on-Tangible-Equity is 34.04% 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.
XReality Group Ltd is engaged in building immersive XR products and experiences. The company develops and operates physical and digital simulations. Its product portfolio includes physical and digital simulation used across the enterprise, defense, and consumer markets. The company has expanded its simulation portfolio from indoor skydiving to include out-of-home virtual reality entertainment, augmented reality, defense XR training, and XR software development. The three segments are Entertainment, Enterprise, and Corporate. The company generates maximum revenue from the entertainment segment.
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