Ulta BeautyFRA:34U +1.41%94 Return-on-Tangible-Equity is 60.30% as of Apr. 2026, which is 41% above its 10-year median of 42.90. GuruFocus rates FRA:34U with a GF Score™ of 94/100 and a GF Value™ of €487.02 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,058 Retail - Cyclical companies, Ulta Beauty ranks better than 88.85% 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. Ulta Beauty's annualized net income for the quarter that ended in Apr. 2026 was €1,164 Mil. Ulta Beauty's average shareholder tangible equity for the quarter that ended in Apr. 2026 was €1,931 Mil. Therefore, Ulta Beauty's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 60.30%.
The historical rank and industry rank for Ulta Beauty's Return-on-Tangible-Equity or its related term are showing as below:
FRA:34U'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.08 Med: 42.9 Max: 71.6
Current: 52.2
During the past 13 years, Ulta Beauty's highest Return-on-Tangible-Equity was 71.60%. The lowest was 9.08%. And the median was 42.90%.
FRA:34U's Return-on-Tangible-Equity is ranked better than 88.85% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs FRA:34U: 52.20
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.
Ulta Beauty Return-on-Tangible-Equity Related Terms
Ulta Beauty Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ulta Beauty'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:34U vs DKS, BBY, TSCO: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Ulta Beauty'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.
Ulta Beauty Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ulta Beauty'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 (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 60.30% mean?
Ulta Beauty (FRA:34U) has a Return-on-Tangible-Equity of 60.30% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ulta Beauty and its competitors. This is 41% above median its historical median of 42.90. Over the past decade, Ulta Beauty's Return-on-Tangible-Equity has ranged from 9.08 to 71.60. According to the industry distribution chart, Ulta Beauty ranks #118 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 11.2%.
Is Ulta Beauty's Return-on-Tangible-Equity too high?
Ulta Beauty's current Return-on-Tangible-Equity of 60.30% is 41% above median its 10-year median of 42.90. Over the past 10 years, this metric has ranged from a low of 9.08 to a high of 71.60. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. Ulta Beauty's value of 60.30% is 624.3% above this industry median. Based on the distribution chart, Ulta Beauty ranks #118 out of 1058 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Ulta Beauty has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ulta Beauty's Return-on-Tangible-Equity compare to DKS and BBY?
According to the Retail - Cyclical industry distribution chart, Ulta Beauty ranks #118 out of 1058 companies for Return-on-Tangible-Equity. This places Ulta Beauty in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.33. Ulta Beauty's value of 60.30% is 624.3% above this benchmark. Historically, Ulta Beauty's own Return-on-Tangible-Equity has ranged from 9.08 to 71.60 over the past decade. While the company's 10-year median is 42.90 vs. the industry median of 8.33, Ulta Beauty 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,058 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. Ulta Beauty's current Return-on-Tangible-Equity of 60.30% is 624.3% 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 Ulta Beauty and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ulta Beauty's current Return-on-Tangible-Equity is 60.30%, which is 41% above median its own 10-year median of 42.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ulta Beauty stock overvalued right now?
Based on GuruFocus' analysis, Ulta Beauty (FRA:34U) is currently considered Modestly Undervalued. The stock's GF Value™ is €487.02, compared to a current price of €402.20 — trading 17.4% below its estimated fair value. The current Return-on-Tangible-Equity is 60.30%, which is 41% above median its 10-year median of 42.90 and 624.3% above the Retail - Cyclical industry median of 8.33. Ulta Beauty's overall GF Score™ is 94/100 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 Ulta Beauty (FRA:34U), the current Return-on-Tangible-Equity is 60.30% as of Apr. 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 Ulta Beauty (FRA:34U) Overvalued in 2026?
Based on GuruFocus' analysis, Ulta Beauty stock appears to be undervalued.
The current stock price of €402.20 is trading 17.4% below its estimated GF Value™ of €487.02.
GuruFocus considers Ulta Beauty to be Modestly Undervalued.
Key valuation signals for FRA:34U:
Return-on-Tangible-Equity: 60.30% (41% above median its 10-year median of 42.90)
GF Value™: €487.02 vs. price of €402.20 (17.4% below fair value)
Industry Position: 624.3% above the Retail - Cyclical median (#118 of 1058)
No single metric tells the full story. See the FRA:34U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ulta Beauty is the largest specialized beauty retailer in the US with more than 1,500 freestanding stores. The firm offers cosmetics (38% of 2025 sales), fragrances (13%), skin care (24%), and hair care products (19%). It also has salon services, including hair, makeup, skin, and brow, that account for 4% of its revenue and drive customer traffic. Outside of the US, Ulta operates premium beauty retailer Space NK (86 stores at year-end 2025 in the UK and Ireland) and has franchised stores in Mexico, and a joint venture in the Middle East. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
94GF Score
Get the complete analysis for FRA:34U
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:34U has been successfully added to your 
