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Abbott IndiaBOM:500488 -2.55%86 Return-on-Tangible-Equity is 33.11% as of Mar. 2026, which is 16% above its 10-year median of 28.49. GuruFocus rates BOM:500488 with a GF Score™ of 86/100 and a GF Value™ of ₹32,475.14 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 899 Drug Manufacturers companies, Abbott India ranks better than 88.77% 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. Abbott India's annualized net income for the quarter that ended in Mar. 2026 was ₹15,797 Mil. Abbott India's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹47,704 Mil. Therefore, Abbott India's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 33.11%.
The historical rank and industry rank for Abbott India's Return-on-Tangible-Equity or its related term are showing as below:
BOM:500488'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.48 Med: 28.49 Max: 35.81
Current: 35.81
During the past 13 years, Abbott India's highest Return-on-Tangible-Equity was 35.81%. The lowest was 21.48%. And the median was 28.49%.
BOM:500488's Return-on-Tangible-Equity is ranked better than 88.77% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.95
vs BOM:500488: 35.81
Abbott India (BOM:500488) 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.
Abbott India Return-on-Tangible-Equity Related Terms
Abbott India Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Abbott India'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:500488 vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Abbott India'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.
Abbott India Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Abbott India's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Abbott India'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 33.11% mean?
Abbott India (BOM:500488) has a Return-on-Tangible-Equity of 33.11% 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 Abbott India and its competitors. This is 16% above median its historical median of 28.49. Over the past decade, Abbott India's Return-on-Tangible-Equity has ranged from 21.48 to 35.81. According to the industry distribution chart, Abbott India ranks #101 out of 899 companies in the Drug Manufacturers industry, placing it in the top 11.2%.
Is Abbott India's Return-on-Tangible-Equity too high?
Abbott India's current Return-on-Tangible-Equity of 33.11% is 16% above median its 10-year median of 28.49. Over the past 10 years, this metric has ranged from a low of 21.48 to a high of 35.81. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.95. Abbott India's value of 33.11% is 316.5% above this industry median. Based on the distribution chart, Abbott India ranks #101 out of 899 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Abbott India has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abbott India's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Abbott India ranks #101 out of 899 companies for Return-on-Tangible-Equity. This places Abbott India in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.95. Abbott India's value of 33.11% is 316.5% above this benchmark. Historically, Abbott India's own Return-on-Tangible-Equity has ranged from 21.48 to 35.81 over the past decade. While the company's 10-year median is 28.49 vs. the industry median of 7.95, Abbott India 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 Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.95, based on 899 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. Abbott India's current Return-on-Tangible-Equity of 33.11% is 316.5% 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 Abbott India and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott India's current Return-on-Tangible-Equity is 33.11%, which is 16% above median its own 10-year median of 28.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott India stock overvalued right now?
Based on GuruFocus' analysis, Abbott India (BOM:500488) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹32,475.14, compared to a current price of ₹28,003.45 — trading 13.8% below its estimated fair value. The current Return-on-Tangible-Equity is 33.11%, which is 16% above median its 10-year median of 28.49 and 316.5% above the Drug Manufacturers industry median of 7.95. Abbott India's overall GF Score™ is 86/100 with 1 warning sign 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 Abbott India (BOM:500488), the current Return-on-Tangible-Equity is 33.11% 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 Abbott India (BOM:500488) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott India stock appears to be undervalued.
The current stock price of ₹28,003.45 is trading 13.8% below its estimated GF Value™ of ₹32,475.14.
GuruFocus considers Abbott India to be Modestly Undervalued.
Key valuation signals for BOM:500488:
Return-on-Tangible-Equity: 33.11% (16% above median its 10-year median of 28.49)
GF Value™: ₹32,475.14 vs. price of ₹28,003.45 (13.8% below fair value)
Industry Position: 316.5% above the Drug Manufacturers median (#101 of 899)
No single metric tells the full story. See the BOM:500488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abbott India Ltd is a drug manufacturing company that offers products in diagnostics, medical devices, nutritionals, and branded generic pharmaceuticals. Its patient focus centers overwhelmingly on women's health and gastrointestine, gastroenterology, and hepatic care. Geographically, the majority of the company's revenue is generated in India.
86GF Score
Get the complete analysis for BOM:500488
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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