Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Eicher MotorsBOM:505200 +1.00%95 Return-on-Tangible-Equity is 25.01% as of Jun. 2026, which is 2% below its 10-year median of 25.49. GuruFocus rates BOM:505200 with a GF Score™ of 95/100 and a GF Value™ of ₹7,432.59 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,282 Vehicles & Parts companies, Eicher Motors ranks better than 89.24% 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. Eicher Motors's annualized net income for the quarter that ended in Jun. 2026 was ₹58,500 Mil. Eicher Motors's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹233,920 Mil. Therefore, Eicher Motors's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 25.01%.
The historical rank and industry rank for Eicher Motors's Return-on-Tangible-Equity or its related term are showing as below:
BOM:505200'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.23 Med: 25.49 Max: 43.02
Current: 27.04
During the past 13 years, Eicher Motors's highest Return-on-Tangible-Equity was 43.02%. The lowest was 13.23%. And the median was 25.49%.
BOM:505200's Return-on-Tangible-Equity is ranked better than 89.24% of 1282
companies
in the Vehicles & Parts industry
Industry Median: 7.61
vs BOM:505200: 27.04
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.
Eicher Motors Return-on-Tangible-Equity Related Terms
Eicher Motors Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Eicher Motors'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:505200 vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Eicher Motors'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.
Eicher Motors Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Eicher Motors's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Eicher Motors'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 25.01% mean?
Eicher Motors (BOM:505200) has a Return-on-Tangible-Equity of 25.01% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Eicher Motors and its competitors. This is near median its historical median of 25.49. Over the past decade, Eicher Motors' Return-on-Tangible-Equity has ranged from 13.23 to 43.02. According to the industry distribution chart, Eicher Motors ranks #138 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 10.8%.
Is Eicher Motors' Return-on-Tangible-Equity too high?
Eicher Motors' current Return-on-Tangible-Equity of 25.01% is near median its 10-year median of 25.49. Over the past 10 years, this metric has ranged from a low of 13.23 to a high of 43.02. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.61. Eicher Motors' value of 25.01% is 228.6% above this industry median. Based on the distribution chart, Eicher Motors ranks #138 out of 1282 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Eicher Motors has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eicher Motors' Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Eicher Motors ranks #138 out of 1282 companies for Return-on-Tangible-Equity. This places Eicher Motors in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.61. Eicher Motors' value of 25.01% is 228.6% above this benchmark. Historically, Eicher Motors' own Return-on-Tangible-Equity has ranged from 13.23 to 43.02 over the past decade. While the company's 10-year median is 25.49 vs. the industry median of 7.61, Eicher Motors 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.61, based on 1,282 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. Eicher Motors's current Return-on-Tangible-Equity of 25.01% is 228.6% 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 Eicher Motors and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eicher Motors's current Return-on-Tangible-Equity is 25.01%, which is near median its own 10-year median of 25.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eicher Motors stock overvalued right now?
Based on GuruFocus' analysis, Eicher Motors (BOM:505200) is currently considered Fairly Valued. The stock's GF Value™ is ₹7,432.59, compared to a current price of ₹7,989.00 — trading 7.5% above its estimated fair value. The current Return-on-Tangible-Equity is 25.01%, which is near median its 10-year median of 25.49 and 228.6% above the Vehicles & Parts industry median of 7.61. Eicher Motors' overall GF Score™ is 95/100 with 4 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 Eicher Motors (BOM:505200), the current Return-on-Tangible-Equity is 25.01% as of Jun. 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 Eicher Motors (BOM:505200) Overvalued in 2026?
Based on GuruFocus' analysis, Eicher Motors stock appears to be overvalued.
The current stock price of ₹7,989.00 is trading 7.5% above its estimated GF Value™ of ₹7,432.59.
GuruFocus considers Eicher Motors to be Fairly Valued.
Key valuation signals for BOM:505200:
Return-on-Tangible-Equity: 25.01% (near median its 10-year median of 25.49)
GF Value™: ₹7,432.59 vs. price of ₹7,989.00 (7.5% above fair value)
Industry Position: 228.6% above the Vehicles & Parts median (#138 of 1282)
No single metric tells the full story. See the BOM:505200 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eicher Motors Ltd is an Indian automobile manufacturer and is also engaged in the retail of related components and accessories. The company manufactures two-wheeler motorcycles and commercial vehicles. The Motorcycles division, which derives its key revenue, produces motorcycles through the Royal Enfield brand. The Commercial Vehicles division, through a joint venture with Volvo, produces trucks and buses for sale in India and other developing markets. The company derives the vast majority of its revenue within India and also has a presence in overseas markets.
95GF Score
Get the complete analysis for BOM:505200
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:505200 has been successfully added to your 
