Rai Way SpAFRA:4RW -0.85%86 Return-on-Tangible-Equity is 50.62% as of Mar. 2026, which is 20% above its 10-year median of 42.05. GuruFocus rates FRA:4RW with a GF Score™ of 86/100 and a GF Value™ of €5.61 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,706 Construction companies, Rai Way SpA ranks better than 90.15% 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. Rai Way SpA's annualized net income for the quarter that ended in Mar. 2026 was €86.3 Mil. Rai Way SpA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €170.5 Mil. Therefore, Rai Way SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 50.62%.
The historical rank and industry rank for Rai Way SpA's Return-on-Tangible-Equity or its related term are showing as below:
FRA:4RW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.4 Med: 42.05 Max: 54.75
Current: 54.46
During the past 13 years, Rai Way SpA's highest Return-on-Tangible-Equity was 54.75%. The lowest was 26.40%. And the median was 42.05%.
FRA:4RW's Return-on-Tangible-Equity is ranked better than 90.15% of 1706
companies
in the Construction industry
Industry Median: 8.235
vs FRA:4RW: 54.46
Rai Way SpA (FRA:4RW) 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.
Rai Way SpA Return-on-Tangible-Equity Related Terms
Rai Way SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rai Way SpA'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:4RW vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Rai Way SpA'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.
Rai Way SpA Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Rai Way SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rai Way SpA'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 50.62% mean?
Rai Way SpA (FRA:4RW) has a Return-on-Tangible-Equity of 50.62% 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 Rai Way SpA and its competitors. This is 20% above median its historical median of 42.05. Over the past decade, Rai Way SpA's Return-on-Tangible-Equity has ranged from 26.40 to 54.75. According to the industry distribution chart, Rai Way SpA ranks #168 out of 1706 companies in the Construction industry, placing it in the top 9.8%.
Is Rai Way SpA's Return-on-Tangible-Equity too high?
Rai Way SpA's current Return-on-Tangible-Equity of 50.62% is 20% above median its 10-year median of 42.05. Over the past 10 years, this metric has ranged from a low of 26.40 to a high of 54.75. The Construction industry median Return-on-Tangible-Equity is 8.24. Rai Way SpA's value of 50.62% is 514.7% above this industry median. Based on the distribution chart, Rai Way SpA ranks #168 out of 1706 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Rai Way SpA has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rai Way SpA's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Rai Way SpA ranks #168 out of 1706 companies for Return-on-Tangible-Equity. This places Rai Way SpA in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.24. Rai Way SpA's value of 50.62% is 514.7% above this benchmark. Historically, Rai Way SpA's own Return-on-Tangible-Equity has ranged from 26.40 to 54.75 over the past decade. While the company's 10-year median is 42.05 vs. the industry median of 8.24, Rai Way SpA 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 8.24, based on 1,706 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. Rai Way SpA's current Return-on-Tangible-Equity of 50.62% is 514.7% 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 Rai Way SpA and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rai Way SpA's current Return-on-Tangible-Equity is 50.62%, which is 20% above median its own 10-year median of 42.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rai Way SpA stock overvalued right now?
Based on GuruFocus' analysis, Rai Way SpA (FRA:4RW) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.61, compared to a current price of €4.65 — trading 17.2% below its estimated fair value. The current Return-on-Tangible-Equity is 50.62%, which is 20% above median its 10-year median of 42.05 and 514.7% above the Construction industry median of 8.24. Rai Way SpA's overall GF Score™ is 86/100 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 Rai Way SpA (FRA:4RW), the current Return-on-Tangible-Equity is 50.62% 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 Rai Way SpA (FRA:4RW) Overvalued in 2026?
Based on GuruFocus' analysis, Rai Way SpA stock appears to be undervalued.
The current stock price of €4.65 is trading 17.2% below its estimated GF Value™ of €5.61.
GuruFocus considers Rai Way SpA to be Modestly Undervalued.
Key valuation signals for FRA:4RW:
Return-on-Tangible-Equity: 50.62% (20% above median its 10-year median of 42.05)
GF Value™: €5.61 vs. price of €4.65 (17.2% below fair value)
Industry Position: 514.7% above the Construction median (#168 of 1706)
No single metric tells the full story. See the FRA:4RW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rai Way SpA is an Italy-based company which operates activity of signal transmission and a broadcasting network of RAI group. The services provided by the company include broadcasting services, transmission services, tower Rental Services and network Services. The company serves its customer by providing implementation and management of the main broadcasting processes which include analog and digital, terrestrial and satellite, for audio, video and data signals, television signals through connecting network. The company allows its clients to have the availability of tower and civil infrastructures to install radio transmitters, planning, construction, installation, management of electronic and telecommunications networks. It provides services throughout Italy.
86GF Score
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