Petroleo Brasileiro PetrobrasBSP:PETR4 +3.15%72 Return-on-Tangible-Equity is 31.43% as of Mar. 2026, which is 110% above its 10-year median of 14.94. GuruFocus rates BSP:PETR4 with a GF Score™ of 72/100 and a GF Value™ of R$34.92 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 944 Oil & Gas companies, Petroleo Brasileiro Petrobras ranks better than 85.17% 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. Petroleo Brasileiro Petrobras's annualized net income for the quarter that ended in Mar. 2026 was R$130,652 Mil. Petroleo Brasileiro Petrobras's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$415,701 Mil. Therefore, Petroleo Brasileiro Petrobras's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 31.43%.
The historical rank and industry rank for Petroleo Brasileiro Petrobras's Return-on-Tangible-Equity or its related term are showing as below:
BSP:PETR4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.49 Med: 14.94 Max: 53.67
Current: 27.12
During the past 13 years, Petroleo Brasileiro Petrobras's highest Return-on-Tangible-Equity was 53.67%. The lowest was -6.49%. And the median was 14.94%.
BSP:PETR4's Return-on-Tangible-Equity is ranked better than 85.17% of 944
companies
in the Oil & Gas industry
Industry Median: 6.73
vs BSP:PETR4: 27.12
Petroleo Brasileiro Petrobras (BSP:PETR4) 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.
Petroleo Brasileiro Petrobras Return-on-Tangible-Equity Related Terms
Petroleo Brasileiro Petrobras Return-on-Tangible-Equity Historical Data
* 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.
Petroleo Brasileiro Petrobras Return-on-Tangible-Equity Chart
BSP:PETR4 vs XOM, CVX: Return-on-Tangible-Equity Comparison
For the Oil & Gas Integrated subindustry, Petroleo Brasileiro Petrobras'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.
Petroleo Brasileiro Petrobras Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Petroleo Brasileiro Petrobras's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Petroleo Brasileiro Petrobras'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 31.43% mean?
Petroleo Brasileiro Petrobras (BSP:PETR4) has a Return-on-Tangible-Equity of 31.43% 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 Petroleo Brasileiro Petrobras and its competitors. This is 110% above median its historical median of 14.94. According to the industry distribution chart, Petroleo Brasileiro Petrobras ranks #140 out of 944 companies in the Oil & Gas industry, placing it in the top 14.8%.
Is Petroleo Brasileiro Petrobras' Return-on-Tangible-Equity too high?
Petroleo Brasileiro Petrobras' current Return-on-Tangible-Equity of 31.43% is 110% above median its 10-year median of 14.94. The Oil & Gas industry median Return-on-Tangible-Equity is 6.73. Petroleo Brasileiro Petrobras' value of 31.43% is 367% above this industry median. Based on the distribution chart, Petroleo Brasileiro Petrobras ranks #140 out of 944 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Petroleo Brasileiro Petrobras has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Petroleo Brasileiro Petrobras' Return-on-Tangible-Equity compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Petroleo Brasileiro Petrobras ranks #140 out of 944 companies for Return-on-Tangible-Equity. This places Petroleo Brasileiro Petrobras in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.73. Petroleo Brasileiro Petrobras' value of 31.43% is 367% above this benchmark. While the company's 10-year median is 14.94 vs. the industry median of 6.73, Petroleo Brasileiro Petrobras 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 an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.73, based on 944 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. Petroleo Brasileiro Petrobras's current Return-on-Tangible-Equity of 31.43% is 367% 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 Petroleo Brasileiro Petrobras and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petroleo Brasileiro Petrobras's current Return-on-Tangible-Equity is 31.43%, which is 110% above median its own 10-year median of 14.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petroleo Brasileiro Petrobras stock overvalued right now?
Based on GuruFocus' analysis, Petroleo Brasileiro Petrobras (BSP:PETR4) is currently considered Modestly Overvalued. The stock's GF Value™ is R$34.92, compared to a current price of R$39.65 — trading 13.5% above its estimated fair value. The current Return-on-Tangible-Equity is 31.43%, which is 110% above median its 10-year median of 14.94 and 367% above the Oil & Gas industry median of 6.73. Petroleo Brasileiro Petrobras' overall GF Score™ is 72/100 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 Petroleo Brasileiro Petrobras (BSP:PETR4), the current Return-on-Tangible-Equity is 31.43% 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 Petroleo Brasileiro Petrobras (BSP:PETR4) Overvalued in 2026?
Based on GuruFocus' analysis, Petroleo Brasileiro Petrobras stock appears to be overvalued.
The current stock price of R$39.65 is trading 13.5% above its estimated GF Value™ of R$34.92.
GuruFocus considers Petroleo Brasileiro Petrobras to be Modestly Overvalued.
Key valuation signals for BSP:PETR4:
Return-on-Tangible-Equity: 31.43% (110% above median its 10-year median of 14.94)
GF Value™: R$34.92 vs. price of R$39.65 (13.5% above fair value)
Industry Position: 367% above the Oil & Gas median (#140 of 944)
No single metric tells the full story. See the BSP:PETR4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petroleo Brasileiro Petrobras Business Description
Petrobras is a Brazil-based integrated energy company controlled by the Brazilian government. The company focuses on the exploration and production of oil and gas in Brazilian offshore fields. Production in 2025 was 3.0 million barrels of oil equivalent per day (80% oil), and reserves stood at 12.1 billion boe (84% oil). At the end of 2025, Petrobras operated 10 refineries in Brazil with a capacity of 1.8 million barrels per day and distributed refined products and natural gas throughout the country.
72GF Score
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