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Bajaj FinanceBOM:500034 +1.75%66 Return-on-Tangible-Equity is 19.37% as of Mar. 2026, which is 5% below its 10-year median of 20.31. GuruFocus rates BOM:500034 with a GF Score™ of 66/100 and a GF Value™ of ₹1,154.60 (Fairly Valued). The stock has 7 warning signs investors should review. Among 526 Credit Services companies, Bajaj Finance ranks better than 82.51% 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. Bajaj Finance's annualized net income for the quarter that ended in Mar. 2026 was ₹218,583 Mil. Bajaj Finance's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹1,128,459 Mil. Therefore, Bajaj Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.37%.
The historical rank and industry rank for Bajaj Finance's Return-on-Tangible-Equity or its related term are showing as below:
BOM:500034'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.87 Med: 20.31 Max: 23.74
Current: 18.37
During the past 13 years, Bajaj Finance's highest Return-on-Tangible-Equity was 23.74%. The lowest was 12.87%. And the median was 20.31%.
BOM:500034's Return-on-Tangible-Equity is ranked better than 82.51% of 526
companies
in the Credit Services industry
Industry Median: 6.975
vs BOM:500034: 18.37
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.
Bajaj Finance Return-on-Tangible-Equity Related Terms
Bajaj Finance Return-on-Tangible-Equity Historical Data
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The historical data trend for Bajaj Finance'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.
BOM:500034 vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Bajaj Finance'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.
Bajaj Finance Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Bajaj Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Bajaj Finance'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 19.37% mean?
Bajaj Finance (BOM:500034) has a Return-on-Tangible-Equity of 19.37% 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 Bajaj Finance and its competitors. This is near median its historical median of 20.31. Over the past decade, Bajaj Finance's Return-on-Tangible-Equity has ranged from 12.87 to 23.74. According to the industry distribution chart, Bajaj Finance ranks #92 out of 526 companies in the Credit Services industry, placing it in the top 17.5%.
Is Bajaj Finance's Return-on-Tangible-Equity too high?
Bajaj Finance's current Return-on-Tangible-Equity of 19.37% is near median its 10-year median of 20.31. Over the past 10 years, this metric has ranged from a low of 12.87 to a high of 23.74. The Credit Services industry median Return-on-Tangible-Equity is 6.98. Bajaj Finance's value of 19.37% is 177.7% above this industry median. Based on the distribution chart, Bajaj Finance ranks #92 out of 526 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Bajaj Finance has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Finance's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Bajaj Finance ranks #92 out of 526 companies for Return-on-Tangible-Equity. This places Bajaj Finance in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.98. Bajaj Finance's value of 19.37% is 177.7% above this benchmark. Historically, Bajaj Finance's own Return-on-Tangible-Equity has ranged from 12.87 to 23.74 over the past decade. While the company's 10-year median is 20.31 vs. the industry median of 6.98, Bajaj Finance 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 Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 6.98, based on 526 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. Bajaj Finance's current Return-on-Tangible-Equity of 19.37% is 177.7% 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 Bajaj Finance and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 6.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Finance's current Return-on-Tangible-Equity is 19.37%, which is near median its own 10-year median of 20.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Finance stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Finance (BOM:500034) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,154.60, compared to a current price of ₹1,055.70 — trading 8.6% below its estimated fair value. The current Return-on-Tangible-Equity is 19.37%, which is near median its 10-year median of 20.31 and 177.7% above the Credit Services industry median of 6.98. Bajaj Finance's overall GF Score™ is 66/100 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 Bajaj Finance (BOM:500034), the current Return-on-Tangible-Equity is 19.37% 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 Bajaj Finance (BOM:500034) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Finance stock appears to be undervalued.
The current stock price of ₹1,055.70 is trading 8.6% below its estimated GF Value™ of ₹1,154.60.
GuruFocus considers Bajaj Finance to be Fairly Valued.
Key valuation signals for BOM:500034:
Return-on-Tangible-Equity: 19.37% (near median its 10-year median of 20.31)
GF Value™: ₹1,154.60 vs. price of ₹1,055.70 (8.6% below fair value)
Industry Position: 177.7% above the Credit Services median (#92 of 526)
No single metric tells the full story. See the BOM:500034 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Finance Ltd is the holding company for various financial services businesses under the Bajaj Group, which operates in India. The company is an NBFC in India offering payments, partnerships, services, and lending solutions to customers. The company's model is focused on the acquisition of customers and offering multiple loans and services on a cross-sell basis to meet their financial service needs. The company provides discretionary spending across consumer electronics, furniture, and digital products in India. The company's strategies and structure are closely aligned with those of commercial banks in India. All of its revenue is generated from India.
66GF Score
Get the complete analysis for BOM:500034
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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