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Peab ABCHIX:PEABBS 76 Return-on-Tangible-Equity is 18.53% as of Jun. 2026, which is 28% below its 10-year median of 25.60. GuruFocus rates CHIX:PEABBS with a GF Score™ of 76/100 and a GF Value™ of kr74.84 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,712 Construction companies, Peab AB ranks better than 72.2% 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. Peab AB's annualized net income for the quarter that ended in Jun. 2026 was kr2,352 Mil. Peab AB's average shareholder tangible equity for the quarter that ended in Jun. 2026 was kr12,695 Mil. Therefore, Peab AB's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 18.53%.
The historical rank and industry rank for Peab AB's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:PEABBs'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.56 Med: 25.6 Max: 35.38
Current: 16.62
During the past 13 years, Peab AB's highest Return-on-Tangible-Equity was 35.38%. The lowest was 10.56%. And the median was 25.60%.
CHIX:PEABBs's Return-on-Tangible-Equity is ranked better than 72.2% of 1712
companies
in the Construction industry
Industry Median: 8.22
vs CHIX:PEABBs: 16.62
Peab AB (CHIX:PEABBs) 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.
Peab AB Return-on-Tangible-Equity Related Terms
Peab AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Peab 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:PEABBS vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Peab 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.
Peab AB Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Peab AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Peab 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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.53% mean?
Peab AB (CHIX:PEABBS) has a Return-on-Tangible-Equity of 18.53% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Peab AB and its competitors. This is 28% below median its historical median of 25.60. Over the past decade, Peab AB's Return-on-Tangible-Equity has ranged from 10.56 to 35.38. According to the industry distribution chart, Peab AB ranks #476 out of 1712 companies in the Construction industry, placing it in the top 27.8%.
Is Peab AB's Return-on-Tangible-Equity too high?
Peab AB's current Return-on-Tangible-Equity of 18.53% is 28% below median its 10-year median of 25.60. Over the past 10 years, this metric has ranged from a low of 10.56 to a high of 35.38. The Construction industry median Return-on-Tangible-Equity is 8.22. Peab AB's value of 18.53% is 125.4% above this industry median. Based on the distribution chart, Peab AB ranks #476 out of 1712 companies in the Construction industry, which is above the industry midpoint. Overall, Peab AB has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Peab AB's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Peab AB ranks #476 out of 1712 companies for Return-on-Tangible-Equity. This puts Peab AB in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.22. Peab AB's value of 18.53% is 125.4% above this benchmark. Historically, Peab AB's own Return-on-Tangible-Equity has ranged from 10.56 to 35.38 over the past decade. While the company's 10-year median is 25.60 vs. the industry median of 8.22, Peab 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.22, based on 1,712 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. Peab AB's current Return-on-Tangible-Equity of 18.53% is 125.4% 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 Peab AB and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Peab AB's current Return-on-Tangible-Equity is 18.53%, which is 28% below median its own 10-year median of 25.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peab AB stock overvalued right now?
Based on GuruFocus' analysis, Peab AB (CHIX:PEABBS) is currently considered Modestly Overvalued. The stock's GF Value™ is kr74.84, compared to a current price of kr88.05 — trading 17.7% above its estimated fair value. The current Return-on-Tangible-Equity is 18.53%, which is 28% below median its 10-year median of 25.60 and 125.4% above the Construction industry median of 8.22. Peab AB's overall GF Score™ is 76/100 with 5 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 Peab AB (CHIX:PEABBS), the current Return-on-Tangible-Equity is 18.53% as of Jun. 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 Peab AB (CHIX:PEABBS) Overvalued in 2026?
Based on GuruFocus' analysis, Peab AB stock appears to be overvalued.
The current stock price of kr88.05 is trading 17.7% above its estimated GF Value™ of kr74.84.
GuruFocus considers Peab AB to be Modestly Overvalued.
Key valuation signals for CHIX:PEABBS:
Return-on-Tangible-Equity: 18.53% (28% below median its 10-year median of 25.60)
GF Value™: kr74.84 vs. price of kr88.05 (17.7% above fair value)
Industry Position: 125.4% above the Construction median (#476 of 1712)
No single metric tells the full story. See the CHIX:PEABBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Peab AB is a Sweden-based construction and civil engineering company. It builds offices around the region and contributes to all stages of construction. Many projects are related to housing, transportation, commercial property, and building materials. It operates in four business areas: Construction, Civil Engineering, Industry, and Project Development. It uses technical expertise and input from customers to complete projects and deliver customized solutions. The majority of sales come from Sweden, and it also operates in Finland and Norway.
76GF Score
Get the complete analysis for CHIX:PEABBS
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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