Banco ABC BrasilBSP:ABCB4 +0.21%62 Return-on-Tangible-Equity is 16.38% as of Dec. 2025, which is 13% above its 10-year median of 14.49. GuruFocus rates BSP:ABCB4 with a GF Score™ of 62/100 and a GF Value™ of R$27.22 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,523 Banks companies, Banco ABC Brasil ranks better than 74.33% 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. Banco ABC Brasil's annualized net income for the quarter that ended in Dec. 2025 was R$1,102 Mil. Banco ABC Brasil's average shareholder tangible equity for the quarter that ended in Dec. 2025 was R$6,730 Mil. Therefore, Banco ABC Brasil's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 16.38%.
The historical rank and industry rank for Banco ABC Brasil's Return-on-Tangible-Equity or its related term are showing as below:
BSP:ABCB4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.84 Med: 14.49 Max: 16.61
Current: 14.95
During the past 13 years, Banco ABC Brasil's highest Return-on-Tangible-Equity was 16.61%. The lowest was 7.84%. And the median was 14.49%.
BSP:ABCB4's Return-on-Tangible-Equity is ranked better than 74.33% of 1523
companies
in the Banks industry
Industry Median: 11.19
vs BSP:ABCB4: 14.95
Banco ABC Brasil (BSP:ABCB4) 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.
Banco ABC Brasil Return-on-Tangible-Equity Related Terms
Banco ABC Brasil Return-on-Tangible-Equity Historical Data
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The historical data trend for Banco ABC Brasil'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.
Banco ABC Brasil Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, Banco ABC Brasil'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.
Banco ABC Brasil Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Banco ABC Brasil's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Banco ABC Brasil'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 (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 16.38% mean?
Banco ABC Brasil (BSP:ABCB4) has a Return-on-Tangible-Equity of 16.38% 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 Banco ABC Brasil and its competitors. This is 13% above median its historical median of 14.49. Over the past decade, Banco ABC Brasil's Return-on-Tangible-Equity has ranged from 7.84 to 16.61. According to the industry distribution chart, Banco ABC Brasil ranks #391 out of 1523 companies in the Banks industry, placing it in the top 25.7%.
Is Banco ABC Brasil's Return-on-Tangible-Equity too high?
Banco ABC Brasil's current Return-on-Tangible-Equity of 16.38% is 13% above median its 10-year median of 14.49. Over the past 10 years, this metric has ranged from a low of 7.84 to a high of 16.61. The Banks industry median Return-on-Tangible-Equity is 11.19. Banco ABC Brasil's value of 16.38% is 46.4% above this industry median. Based on the distribution chart, Banco ABC Brasil ranks #391 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, Banco ABC Brasil has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Banco ABC Brasil's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, Banco ABC Brasil ranks #391 out of 1523 companies for Return-on-Tangible-Equity. This puts Banco ABC Brasil in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.19. Banco ABC Brasil's value of 16.38% is 46.4% above this benchmark. Historically, Banco ABC Brasil's own Return-on-Tangible-Equity has ranged from 7.84 to 16.61 over the past decade. While the company's 10-year median is 14.49 vs. the industry median of 11.19, Banco ABC Brasil 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,523 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. Banco ABC Brasil's current Return-on-Tangible-Equity of 16.38% is 46.4% 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 Banco ABC Brasil and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco ABC Brasil's current Return-on-Tangible-Equity is 16.38%, which is 13% above median its own 10-year median of 14.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco ABC Brasil stock overvalued right now?
Based on GuruFocus' analysis, Banco ABC Brasil (BSP:ABCB4) is currently considered Modestly Undervalued. The stock's GF Value™ is R$27.22, compared to a current price of R$23.79 — trading 12.6% below its estimated fair value. The current Return-on-Tangible-Equity is 16.38%, which is 13% above median its 10-year median of 14.49 and 46.4% above the Banks industry median of 11.19. Banco ABC Brasil's overall GF Score™ is 62/100 with 3 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 Banco ABC Brasil (BSP:ABCB4), the current Return-on-Tangible-Equity is 16.38% 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 Banco ABC Brasil (BSP:ABCB4) Overvalued in 2026?
Based on GuruFocus' analysis, Banco ABC Brasil stock appears to be undervalued.
The current stock price of R$23.79 is trading 12.6% below its estimated GF Value™ of R$27.22.
GuruFocus considers Banco ABC Brasil to be Modestly Undervalued.
Key valuation signals for BSP:ABCB4:
Return-on-Tangible-Equity: 16.38% (13% above median its 10-year median of 14.49)
GF Value™: R$27.22 vs. price of R$23.79 (12.6% below fair value)
Industry Position: 46.4% above the Banks median (#391 of 1523)
No single metric tells the full story. See the BSP:ABCB4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Banco ABC Brasil SA operates as a commercial bank specializing in lending and providing services for mid-size and large companies. It focuses on asset and liability operations across multiple banking activities and is authorized to operate in commercial banking, foreign exchange, investment banking, credit, financing, and real estate credit. The company's activities also include debt and equity capital markets, mergers and acquisitions, project finance, energy trading, and insurance brokerage. It derives the majority of its revenue from financial guarantees provided.
62GF Score
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