Elbit SystemsESLT +0.17%67 Return-on-Tangible-Equity is 27.06% as of Mar. 2026, which is 12% below its 10-year median of 30.58. GuruFocus rates ESLT with a GF Score™ of 67/100 and a GF Value™ of $373.39 (Significantly Overvalued). Among 334 Aerospace & Defense companies, Elbit Systems ranks better than 77.84% 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. Elbit Systems's annualized net income for the quarter that ended in Mar. 2026 was $643 Mil. Elbit Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,377 Mil. Therefore, Elbit Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 27.06%.
The historical rank and industry rank for Elbit Systems's Return-on-Tangible-Equity or its related term are showing as below:
ESLT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.94 Med: 30.58 Max: 49.09
Current: 27.99
During the past 13 years, Elbit Systems's highest Return-on-Tangible-Equity was 49.09%. The lowest was 22.94%. And the median was 30.58%.
ESLT's Return-on-Tangible-Equity is ranked better than 77.84% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs ESLT: 27.99
Elbit Systems (NAS:ESLT) 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.
Elbit Systems Return-on-Tangible-Equity Related Terms
Elbit Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Elbit Systems'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.
ESLT vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Elbit Systems'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.
Elbit Systems Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Elbit Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Elbit Systems'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 27.06% mean?
Elbit Systems (ESLT) has a Return-on-Tangible-Equity of 27.06% 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 Elbit Systems and its competitors. This is 12% below median its historical median of 30.58. Over the past decade, Elbit Systems' Return-on-Tangible-Equity has ranged from 22.94 to 49.09. According to the industry distribution chart, Elbit Systems ranks #74 out of 334 companies in the Aerospace & Defense industry, placing it in the top 22.2%.
Is Elbit Systems' Return-on-Tangible-Equity too high?
Elbit Systems' current Return-on-Tangible-Equity of 27.06% is 12% below median its 10-year median of 30.58. Over the past 10 years, this metric has ranged from a low of 22.94 to a high of 49.09. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Elbit Systems' value of 27.06% is 230.2% above this industry median. Based on the distribution chart, Elbit Systems ranks #74 out of 334 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Elbit Systems has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Elbit Systems' Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Elbit Systems ranks #74 out of 334 companies for Return-on-Tangible-Equity. This places Elbit Systems in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. Elbit Systems' value of 27.06% is 230.2% above this benchmark. Historically, Elbit Systems' own Return-on-Tangible-Equity has ranged from 22.94 to 49.09 over the past decade. While the company's 10-year median is 30.58 vs. the industry median of 8.20, Elbit Systems 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 Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 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. Elbit Systems's current Return-on-Tangible-Equity of 27.06% is 230.2% 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 Elbit Systems and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elbit Systems's current Return-on-Tangible-Equity is 27.06%, which is 12% below median its own 10-year median of 30.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elbit Systems stock overvalued right now?
Based on GuruFocus' analysis, Elbit Systems (ESLT) is currently considered Significantly Overvalued. The stock's GF Value™ is $373.39, compared to a current price of $759.98 — trading 103.5% above its estimated fair value. The current Return-on-Tangible-Equity is 27.06%, which is 12% below median its 10-year median of 30.58 and 230.2% above the Aerospace & Defense industry median of 8.20. Elbit Systems' overall GF Score™ is 67/100. 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 Elbit Systems (ESLT), the current Return-on-Tangible-Equity is 27.06% 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 Elbit Systems (ESLT) Overvalued in 2026?
Based on GuruFocus' analysis, Elbit Systems stock appears to be overvalued.
The current stock price of $759.98 is trading 103.5% above its estimated GF Value™ of $373.39.
GuruFocus considers Elbit Systems to be Significantly Overvalued.
Key valuation signals for ESLT:
Return-on-Tangible-Equity: 27.06% (12% below median its 10-year median of 30.58)
GF Value™: $373.39 vs. price of $759.98 (103.5% above fair value)
Industry Position: 230.2% above the Aerospace & Defense median (#74 of 334)
No single metric tells the full story. See the ESLT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elbit Systems Ltd is a technology company involved in producing a portfolio of systems and products for aircraft, land, and naval applications. The company's products are used for defense, homeland security and commercial flight capabilities. Its systems and solutions may be installed on new platforms or it may perform a comprehensive modernization program to transform a platform. Elbit Systems gives instructions to its customers on the proper maintenance of its products and will provide support team specialists when the customer cannot fix a problem. The company operates in five segments: Aerospace; C4I and Cyber; ISTAR and EW; Land; and ESA. It derives maximum revenue from Land Segment. Geographically, it operates in Israel; North America; Europe; Asia-Pacific; Latin America; and Others.
67GF Score
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