Balfour BeattyBAFBF 77 Return-on-Tangible-Equity is 886.85% as of Dec. 2025, which is 617% above its 10-year median of 123.61. GuruFocus rates BAFBF with a GF Score™ of 77/100 and a GF Value™ of $7.64 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,704 Construction companies, Balfour Beatty ranks better than 94.07% 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. Balfour Beatty's annualized net income for the quarter that ended in Dec. 2025 was $434 Mil. Balfour Beatty's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $49 Mil. Therefore, Balfour Beatty's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 886.85%.
The historical rank and industry rank for Balfour Beatty's Return-on-Tangible-Equity or its related term are showing as below:
BAFBF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.25 Med: 123.61 Max: 1095.83
Current: 1095.83
During the past 13 years, Balfour Beatty's highest Return-on-Tangible-Equity was 1,095.83%. The lowest was 13.25%. And the median was 123.61%.
BAFBF's Return-on-Tangible-Equity is ranked better than 94.07% of 1704
companies
in the Construction industry
Industry Median: 8.245
vs BAFBF: 1095.83
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.
Balfour Beatty Return-on-Tangible-Equity Related Terms
Balfour Beatty Return-on-Tangible-Equity Historical Data
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The historical data trend for Balfour Beatty'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.
BAFBF vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Balfour Beatty'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.
Balfour Beatty Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Balfour Beatty'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 886.85% mean?
Balfour Beatty (BAFBF) has a Return-on-Tangible-Equity of 886.85% 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 Balfour Beatty and its competitors. This is 617% above median its historical median of 123.61. Over the past decade, Balfour Beatty's Return-on-Tangible-Equity has ranged from 13.25 to 1,095.83. According to the industry distribution chart, Balfour Beatty ranks #101 out of 1704 companies in the Construction industry, placing it in the top 5.9%.
Is Balfour Beatty's Return-on-Tangible-Equity too high?
Balfour Beatty's current Return-on-Tangible-Equity of 886.85% is 617% above median its 10-year median of 123.61. Over the past 10 years, this metric has ranged from a low of 13.25 to a high of 1,095.83. The Construction industry median Return-on-Tangible-Equity is 8.25. Balfour Beatty's value of 886.85% is 10656.2% above this industry median. Based on the distribution chart, Balfour Beatty ranks #101 out of 1704 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Balfour Beatty has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #101 out of 1704 companies for Return-on-Tangible-Equity. This places Balfour Beatty in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. Balfour Beatty's value of 886.85% is 10656.2% above this benchmark. Historically, Balfour Beatty's own Return-on-Tangible-Equity has ranged from 13.25 to 1,095.83 over the past decade. While the company's 10-year median is 123.61 vs. the industry median of 8.25, Balfour Beatty 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,704 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. Balfour Beatty's current Return-on-Tangible-Equity of 886.85% is 10656.2% 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 Balfour Beatty and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balfour Beatty's current Return-on-Tangible-Equity is 886.85%, which is 617% above median its own 10-year median of 123.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BAFBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.64, compared to a current price of $11.20 — trading 46.6% above its estimated fair value. The current Return-on-Tangible-Equity is 886.85%, which is 617% above median its 10-year median of 123.61 and 10656.2% above the Construction industry median of 8.25. Balfour Beatty's overall GF Score™ is 77/100 with 7 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 Balfour Beatty (BAFBF), the current Return-on-Tangible-Equity is 886.85% 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 Balfour Beatty (BAFBF) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $11.20 is trading 46.6% above its estimated GF Value™ of $7.64.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BAFBF:
Return-on-Tangible-Equity: 886.85% (617% above median its 10-year median of 123.61)
GF Value™: $7.64 vs. price of $11.20 (46.6% above fair value)
Industry Position: 10656.2% above the Construction median (#101 of 1704)
No single metric tells the full story. See the BAFBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
77GF Score
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