Telefonica BrasilBSP:VIVT3 +3.62%79 Return-on-Tangible-Equity is 23.66% as of Mar. 2026, which is 15% above its 10-year median of 20.57. GuruFocus rates BSP:VIVT3 with a GF Score™ of 79/100 and a GF Value™ of R$31.52 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 325 Telecommunication Services companies, Telefonica Brasil ranks better than 63.08% 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. Telefonica Brasil's annualized net income for the quarter that ended in Mar. 2026 was R$5,044 Mil. Telefonica Brasil's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$21,316 Mil. Therefore, Telefonica Brasil's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.66%.
The historical rank and industry rank for Telefonica Brasil's Return-on-Tangible-Equity or its related term are showing as below:
BSP:VIVT3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.41 Med: 20.57 Max: 32.16
Current: 30.63
During the past 13 years, Telefonica Brasil's highest Return-on-Tangible-Equity was 32.16%. The lowest was 16.41%. And the median was 20.57%.
BSP:VIVT3's Return-on-Tangible-Equity is ranked better than 63.08% of 325
companies
in the Telecommunication Services industry
Industry Median: 14.53
vs BSP:VIVT3: 30.63
Telefonica Brasil (BSP:VIVT3) 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.
Telefonica Brasil Return-on-Tangible-Equity Related Terms
Telefonica Brasil Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Telefonica 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.
BSP:VIVT3 vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Telefonica 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.
Telefonica Brasil Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Telefonica 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 (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 23.66% mean?
Telefonica Brasil (BSP:VIVT3) has a Return-on-Tangible-Equity of 23.66% 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 Telefonica Brasil and its competitors. This is 15% above median its historical median of 20.57. Over the past decade, Telefonica Brasil's Return-on-Tangible-Equity has ranged from 16.41 to 32.16. According to the industry distribution chart, Telefonica Brasil ranks #120 out of 325 companies in the Telecommunication Services industry, placing it in the top 36.9%.
Is Telefonica Brasil's Return-on-Tangible-Equity too high?
Telefonica Brasil's current Return-on-Tangible-Equity of 23.66% is 15% above median its 10-year median of 20.57. Over the past 10 years, this metric has ranged from a low of 16.41 to a high of 32.16. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.53. Telefonica Brasil's value of 23.66% is 62.8% above this industry median. Based on the distribution chart, Telefonica Brasil ranks #120 out of 325 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telefonica Brasil has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica Brasil ranks #120 out of 325 companies for Return-on-Tangible-Equity. This puts Telefonica Brasil in the upper half of its industry. The industry median Return-on-Tangible-Equity is 14.53. Telefonica Brasil's value of 23.66% is 62.8% above this benchmark. Historically, Telefonica Brasil's own Return-on-Tangible-Equity has ranged from 16.41 to 32.16 over the past decade. While the company's 10-year median is 20.57 vs. the industry median of 14.53, Telefonica 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.53, based on 325 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. Telefonica Brasil's current Return-on-Tangible-Equity of 23.66% is 62.8% 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 Telefonica Brasil and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonica Brasil's current Return-on-Tangible-Equity is 23.66%, which is 15% above median its own 10-year median of 20.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica Brasil stock overvalued right now?
Based on GuruFocus' analysis, Telefonica Brasil (BSP:VIVT3) is currently considered Modestly Overvalued. The stock's GF Value™ is R$31.52, compared to a current price of R$35.75 — trading 13.4% above its estimated fair value. The current Return-on-Tangible-Equity is 23.66%, which is 15% above median its 10-year median of 20.57 and 62.8% above the Telecommunication Services industry median of 14.53. Telefonica Brasil's overall GF Score™ is 79/100 with 2 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 Telefonica Brasil (BSP:VIVT3), the current Return-on-Tangible-Equity is 23.66% 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 Telefonica Brasil (BSP:VIVT3) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica Brasil stock appears to be overvalued.
The current stock price of R$35.75 is trading 13.4% above its estimated GF Value™ of R$31.52.
GuruFocus considers Telefonica Brasil to be Modestly Overvalued.
Key valuation signals for BSP:VIVT3:
Return-on-Tangible-Equity: 23.66% (15% above median its 10-year median of 20.57)
GF Value™: R$31.52 vs. price of R$35.75 (13.4% above fair value)
Industry Position: 62.8% above the Telecommunication Services median (#120 of 325)
No single metric tells the full story. See the BSP:VIVT3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 103 million customers, which is equal to about 38% market share. The firm is strongest in the postpaid business, where it has 72 million customers, or about 40% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and also owns an extensive fiber network across the country. The firm provides internet access to 8 million households on this network. The firm also sells pay-TV and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 10% of total revenue.
79GF Score
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