BT GroupCHIX:BTL +0.27%67 Return-on-Tangible-Equity is 160.60% as of Mar. 2026, which is 47% below its 10-year median of 301.74. GuruFocus rates CHIX:BTL with a GF Score™ of 67/100 and a GF Value™ of £1.38 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 327 Telecommunication Services companies, BT Group ranks better than 79.51% 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. BT Group's annualized net income for the quarter that ended in Mar. 2026 was £852 Mil. BT Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was £531 Mil. Therefore, BT Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 160.60%.
The historical rank and industry rank for BT Group's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:BTl'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 164.65 Med: 301.74 Max: 2887.67
Current: 210.35
During the past 13 years, BT Group's highest Return-on-Tangible-Equity was 2,887.67%. The lowest was 164.65%. And the median was 301.74%.
CHIX:BTl's Return-on-Tangible-Equity is ranked better than 79.51% of 327
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs CHIX:BTl: 210.35
BT Group (CHIX:BTl) 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.
BT Group Return-on-Tangible-Equity Related Terms
BT Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for BT Group'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:BTL vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, BT Group'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.
BT Group Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, BT Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BT Group'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 two times the semi-annual (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 160.60% mean?
BT Group (CHIX:BTL) has a Return-on-Tangible-Equity of 160.60% 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 BT Group and its competitors. This is 47% below median its historical median of 301.74. Over the past decade, BT Group's Return-on-Tangible-Equity has ranged from 164.65 to 2,887.67. According to the industry distribution chart, BT Group ranks #67 out of 327 companies in the Telecommunication Services industry, placing it in the top 20.5%.
Is BT Group's Return-on-Tangible-Equity too high?
BT Group's current Return-on-Tangible-Equity of 160.60% is 47% below median its 10-year median of 301.74. Over the past 10 years, this metric has ranged from a low of 164.65 to a high of 2,887.67. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.99. BT Group's value of 160.60% is 1048% above this industry median. Based on the distribution chart, BT Group ranks #67 out of 327 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, BT Group has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BT Group's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, BT Group ranks #67 out of 327 companies for Return-on-Tangible-Equity. This places BT Group in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.99. BT Group's value of 160.60% is 1048% above this benchmark. Historically, BT Group's own Return-on-Tangible-Equity has ranged from 164.65 to 2,887.67 over the past decade. While the company's 10-year median is 301.74 vs. the industry median of 13.99, BT Group 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 13.99, based on 327 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. BT Group's current Return-on-Tangible-Equity of 160.60% is 1048% 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 BT Group and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BT Group's current Return-on-Tangible-Equity is 160.60%, which is 47% below median its own 10-year median of 301.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BT Group stock overvalued right now?
Based on GuruFocus' analysis, BT Group (CHIX:BTL) is currently considered Significantly Overvalued. The stock's GF Value™ is £1.38, compared to a current price of £1.88 — trading 36.2% above its estimated fair value. The current Return-on-Tangible-Equity is 160.60%, which is 47% below median its 10-year median of 301.74 and 1048% above the Telecommunication Services industry median of 13.99. BT Group's overall GF Score™ is 67/100 with 6 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 BT Group (CHIX:BTL), the current Return-on-Tangible-Equity is 160.60% 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 BT Group (CHIX:BTL) Overvalued in 2026?
Based on GuruFocus' analysis, BT Group stock appears to be overvalued.
The current stock price of £1.88 is trading 36.2% above its estimated GF Value™ of £1.38.
GuruFocus considers BT Group to be Significantly Overvalued.
Key valuation signals for CHIX:BTL:
Return-on-Tangible-Equity: 160.60% (47% below median its 10-year median of 301.74)
GF Value™: £1.38 vs. price of £1.88 (36.2% above fair value)
Industry Position: 1048% above the Telecommunication Services median (#67 of 327)
No single metric tells the full story. See the CHIX:BTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BT Group is the incumbent telecommunications operator in the UK. BT is the owner of Openreach, the largest fixed-line network in the country. Openreach operates as a separate entity due to regulatory requirements, but is still 100% owned by BT. Openreach has accelerated its fiber investments and expects to have 90% of the UK covered with FTTH by 2026. In the consumer division, BT has approximately 30% market share in broadband and mobile services. The enterprise segment serves large corporations, while the global services division provides communications consultancy services.
67GF Score
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