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. Gaotu Techedu's annualized net income for the quarter that ended in Mar. 2026 was €17.3 Mil. Gaotu Techedu's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €140.2 Mil. Therefore, Gaotu Techedu's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.36%.
The historical rank and industry rank for Gaotu Techedu's Return-on-Tangible-Equity or its related term are showing as below:
FRA:18WA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -74.34 Med: -21.92 Max: 29.64
Current: -28.89
During the past 9 years, Gaotu Techedu's highest Return-on-Tangible-Equity was 29.64%. The lowest was -74.34%. And the median was -21.92%.
FRA:18WA's Return-on-Tangible-Equity is ranked worse than 89.84% of 246
companies
in the Education industry
Industry Median: 11.395
vs FRA:18WA: -28.89
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.
Gaotu Techedu Return-on-Tangible-Equity Related Terms
Gaotu Techedu Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Gaotu Techedu'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.
FRA:18WA vs KLC, FC, JDZG: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, Gaotu Techedu'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.
Gaotu Techedu Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, Gaotu Techedu's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Gaotu Techedu'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 12.36% mean?
Gaotu Techedu (FRA:18WA) has a Return-on-Tangible-Equity of 12.36% 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 Gaotu Techedu and its competitors. According to the industry distribution chart, Gaotu Techedu ranks #221 out of 246 companies in the Education industry, placing it in the top 89.8%.
Is Gaotu Techedu's Return-on-Tangible-Equity too high?
Gaotu Techedu's current Return-on-Tangible-Equity is 12.36%. The Education industry median Return-on-Tangible-Equity is 11.40. Gaotu Techedu's value of 12.36% is 8.5% above this industry median. Based on the distribution chart, Gaotu Techedu ranks #221 out of 246 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Gaotu Techedu has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Gaotu Techedu's Return-on-Tangible-Equity compare to KLC and FC?
According to the Education industry distribution chart, Gaotu Techedu ranks #221 out of 246 companies for Return-on-Tangible-Equity. This places Gaotu Techedu in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.40. Gaotu Techedu's value of 12.36% is 8.5% above this benchmark. 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 Education company?
The median Return-on-Tangible-Equity among Education companies is 11.40, based on 246 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. Gaotu Techedu's current Return-on-Tangible-Equity of 12.36% is 8.5% 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 Gaotu Techedu and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 11.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current Return-on-Tangible-Equity is 12.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gaotu Techedu stock overvalued right now?
Gaotu Techedu (FRA:18WA) has a current Return-on-Tangible-Equity of 12.36%. The stock's GF Value™ is €4.96, compared to a current price of €1.57 — trading 68.3% below its estimated fair value. The current Return-on-Tangible-Equity is 12.36% and 8.5% above the Education industry median of 11.40. Gaotu Techedu's overall GF Score™ is 66/100 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 Gaotu Techedu (FRA:18WA), the current Return-on-Tangible-Equity is 12.36% 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 Gaotu Techedu (FRA:18WA) Overvalued in 2026?
Based on GuruFocus' analysis, Gaotu Techedu stock appears to be undervalued.
The current stock price of €1.57 is trading 68.3% below its estimated GF Value™ of €4.96.
Key valuation signals for FRA:18WA:
Return-on-Tangible-Equity: 12.36%
GF Value™: €4.96 vs. price of €1.57 (68.3% below fair value)
Industry Position: 8.5% above the Education median (#221 of 246)
No single metric tells the full story. See the FRA:18WA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gaotu Techedu Inc is a technology-driven education company that provides online live courses in a large-class setting backed by its proprietary technology infrastructure. The company offers courses in large-class format, which amplifies the benefits of online education and allows it to rapidly expand its student base. It operates solely in the PRC and all assets are located in the PRC. The learning services that the company offers include Traditional Learning Services, Non-Academic Tutoring Services, and College Student and Adult Education Services. It derives maximum revenue from Learning Services and also from Educational content & digitalized learning products.
66GF Score
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