Avarda Bank ABCHIX:AVARDS 76 Return-on-Tangible-Equity is 25.62% as of Mar. 2026, which is 2% above its 10-year median of 25.18. GuruFocus rates CHIX:AVARDS with a GF Score™ of 76/100 and a GF Value™ of kr135.51 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,522 Banks companies, Avarda Bank AB ranks better than 93.96% 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. Avarda Bank AB's annualized net income for the quarter that ended in Mar. 2026 was kr843 Mil. Avarda Bank AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was kr3,290 Mil. Therefore, Avarda Bank AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 25.62%.
The historical rank and industry rank for Avarda Bank AB's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:AVARDs'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.48 Med: 25.18 Max: 32.74
Current: 24.04
During the past 13 years, Avarda Bank AB's highest Return-on-Tangible-Equity was 32.74%. The lowest was 21.48%. And the median was 25.18%.
CHIX:AVARDs's Return-on-Tangible-Equity is ranked better than 93.96% of 1522
companies
in the Banks industry
Industry Median: 11.205
vs CHIX:AVARDs: 24.04
Avarda Bank AB (CHIX:AVARDs) 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.
Avarda Bank AB Return-on-Tangible-Equity Related Terms
Avarda Bank AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Avarda Bank AB'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.
CHIX:AVARDS vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Avarda Bank AB'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.
Avarda Bank AB Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Avarda Bank AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Avarda Bank AB'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 25.62% mean?
Avarda Bank AB (CHIX:AVARDS) has a Return-on-Tangible-Equity of 25.62% 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 Avarda Bank AB and its competitors. This is near median its historical median of 25.18. Over the past decade, Avarda Bank AB's Return-on-Tangible-Equity has ranged from 21.48 to 32.74. According to the industry distribution chart, Avarda Bank AB ranks #92 out of 1522 companies in the Banks industry, placing it in the top 6%.
Is Avarda Bank AB's Return-on-Tangible-Equity too high?
Avarda Bank AB's current Return-on-Tangible-Equity of 25.62% is near median its 10-year median of 25.18. Over the past 10 years, this metric has ranged from a low of 21.48 to a high of 32.74. The Banks industry median Return-on-Tangible-Equity is 11.21. Avarda Bank AB's value of 25.62% is 128.6% above this industry median. Based on the distribution chart, Avarda Bank AB ranks #92 out of 1522 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Avarda Bank AB has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avarda Bank AB's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Avarda Bank AB ranks #92 out of 1522 companies for Return-on-Tangible-Equity. This places Avarda Bank AB in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.21. Avarda Bank AB's value of 25.62% is 128.6% above this benchmark. Historically, Avarda Bank AB's own Return-on-Tangible-Equity has ranged from 21.48 to 32.74 over the past decade. While the company's 10-year median is 25.18 vs. the industry median of 11.21, Avarda Bank AB 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 11.21, based on 1,522 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. Avarda Bank AB's current Return-on-Tangible-Equity of 25.62% is 128.6% 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 Avarda Bank AB and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avarda Bank AB's current Return-on-Tangible-Equity is 25.62%, which is near median its own 10-year median of 25.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avarda Bank AB stock overvalued right now?
Based on GuruFocus' analysis, Avarda Bank AB (CHIX:AVARDS) is currently considered Significantly Overvalued. The stock's GF Value™ is kr135.51, compared to a current price of kr177.40 — trading 30.9% above its estimated fair value. The current Return-on-Tangible-Equity is 25.62%, which is near median its 10-year median of 25.18 and 128.6% above the Banks industry median of 11.21. Avarda Bank AB's overall GF Score™ is 76/100 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 Avarda Bank AB (CHIX:AVARDS), the current Return-on-Tangible-Equity is 25.62% 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 Avarda Bank AB (CHIX:AVARDS) Overvalued in 2026?
Based on GuruFocus' analysis, Avarda Bank AB stock appears to be overvalued.
The current stock price of kr177.40 is trading 30.9% above its estimated GF Value™ of kr135.51.
GuruFocus considers Avarda Bank AB to be Significantly Overvalued.
Key valuation signals for CHIX:AVARDS:
Return-on-Tangible-Equity: 25.62% (near median its 10-year median of 25.18)
GF Value™: kr135.51 vs. price of kr177.40 (30.9% above fair value)
Industry Position: 128.6% above the Banks median (#92 of 1522)
No single metric tells the full story. See the CHIX:AVARDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avarda Bank AB is a credit market company that provides secure, flexible, unified payment solutions for retailers in Europe. Through its white-label model, it enables merchants to own and control the entire customer journey, strengthening brand awareness, increasing conversion and customer lifetime value, and driving loyalty.
76GF Score
Get the complete analysis for CHIX:AVARDS
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