Avalo TherapeuticsAVTX -6.39%23 Return-on-Tangible-Equity is -120.46% as of Mar. 2026. GuruFocus rates AVTX with a GF Score™ of 23/100 and a GF Value™ of $0.03 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,199 Biotechnology companies, Avalo Therapeutics ranks worse than 72.98% 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. Avalo Therapeutics's annualized net income for the quarter that ended in Mar. 2026 was $-78.52 Mil. Avalo Therapeutics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $65.18 Mil. Therefore, Avalo Therapeutics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -120.46%.
The historical rank and industry rank for Avalo Therapeutics's Return-on-Tangible-Equity or its related term are showing as below:
AVTX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -997.72 Med: -357.05 Max: -58.88
Current: -101.46
During the past 13 years, Avalo Therapeutics's highest Return-on-Tangible-Equity was -58.88%. The lowest was -997.72%. And the median was -357.05%.
AVTX's Return-on-Tangible-Equity is ranked worse than 72.98% of 1199
companies
in the Biotechnology industry
Industry Median: -42.4
vs AVTX: -101.46
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.
Avalo Therapeutics Return-on-Tangible-Equity Related Terms
Avalo Therapeutics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Avalo Therapeutics'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.
AVTX vs SANA, ANRO, REPL: Return-on-Tangible-Equity Comparison
For the Biotechnology subindustry, Avalo Therapeutics'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.
Avalo Therapeutics Return-on-Tangible-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Avalo Therapeutics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Avalo Therapeutics'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 -120.46% mean?
Avalo Therapeutics (AVTX) has a Return-on-Tangible-Equity of -120.46% 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 Avalo Therapeutics and its competitors. According to the industry distribution chart, Avalo Therapeutics ranks #875 out of 1199 companies in the Biotechnology industry, placing it in the top 73%.
Is Avalo Therapeutics' Return-on-Tangible-Equity too high?
Avalo Therapeutics' current Return-on-Tangible-Equity is -120.46%. Based on the distribution chart, Avalo Therapeutics ranks #875 out of 1199 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Avalo Therapeutics has a GF Score™ of 23/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avalo Therapeutics' Return-on-Tangible-Equity compare to SANA and ANRO?
According to the Biotechnology industry distribution chart, Avalo Therapeutics ranks #875 out of 1199 companies for Return-on-Tangible-Equity. This places Avalo Therapeutics in the lower half of its industry. 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 Biotechnology company?
A good Return-on-Tangible-Equity depends on the Biotechnology industry context. 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 Avalo Therapeutics and its competitors. Avalo Therapeutics's current Return-on-Tangible-Equity is -120.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avalo Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, Avalo Therapeutics (AVTX) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.03, compared to a current price of $17.30 — trading 57550% above its estimated fair value. The current Return-on-Tangible-Equity is -120.46%. Avalo Therapeutics' overall GF Score™ is 23/100 with 5 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 Avalo Therapeutics (AVTX), the current Return-on-Tangible-Equity is -120.46% 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.
Is Avalo Therapeutics (AVTX) Overvalued in 2026?
Based on GuruFocus' analysis, Avalo Therapeutics stock appears to be overvalued.
The current stock price of $17.30 is trading 57550% above its estimated GF Value™ of $0.03.
GuruFocus considers Avalo Therapeutics to be Significantly Overvalued.
Key valuation signals for AVTX:
Return-on-Tangible-Equity: -120.46%
GF Value™: $0.03 vs. price of $17.30 (57550% above fair value)
No single metric tells the full story. See the AVTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avalo Therapeutics Inc is a clinical stage biotechnology company fully dedicated to developing IL-1B-based treatments for immune-mediated inflammatory diseases. The company's asset is Abdakibart (AVTX-009) an anti-IL-1B monoclonal antibody ("mAb"), targeting inflammatory diseases. Avalos pipeline also includes quisovalimab (anti-LIGHT mAb) and AVTX-008 (BTLA agonist fusion protein), AVTX-006 and AVTX-913.
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