BYD CoFRA:BY6 +2.63%92 Return-on-Tangible-Equity is 8.52% as of Mar. 2026, which is 39% below its 10-year median of 13.89. GuruFocus rates FRA:BY6 with a GF Score™ of 92/100 and a GF Value™ of €9.81 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,282 Vehicles & Parts companies, BYD Co ranks better than 72.7% 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. BYD Co's annualized net income for the quarter that ended in Mar. 2026 was €2,051 Mil. BYD Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €24,073 Mil. Therefore, BYD Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.52%.
The historical rank and industry rank for BYD Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:BY6'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.21 Med: 13.89 Max: 33.76
Current: 14.35
During the past 13 years, BYD Co's highest Return-on-Tangible-Equity was 33.76%. The lowest was 4.21%. And the median was 13.89%.
FRA:BY6's Return-on-Tangible-Equity is ranked better than 72.7% of 1282
companies
in the Vehicles & Parts industry
Industry Median: 7.5
vs FRA:BY6: 14.35
BYD Co (FRA:BY6) 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.
BYD Co Return-on-Tangible-Equity Related Terms
BYD Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for BYD Co'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:BY6 vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, BYD Co'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.
BYD Co Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, BYD Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BYD Co'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 8.52% mean?
BYD Co (FRA:BY6) has a Return-on-Tangible-Equity of 8.52% 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 BYD Co and its competitors. This is 39% below median its historical median of 13.89. Over the past decade, BYD Co's Return-on-Tangible-Equity has ranged from 4.21 to 33.76. According to the industry distribution chart, BYD Co ranks #350 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 27.3%.
Is BYD Co's Return-on-Tangible-Equity too high?
BYD Co's current Return-on-Tangible-Equity of 8.52% is 39% below median its 10-year median of 13.89. Over the past 10 years, this metric has ranged from a low of 4.21 to a high of 33.76. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.50. BYD Co's value of 8.52% is 13.6% above this industry median. Based on the distribution chart, BYD Co ranks #350 out of 1282 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, BYD Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BYD Co's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, BYD Co ranks #350 out of 1282 companies for Return-on-Tangible-Equity. This puts BYD Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.50. BYD Co's value of 8.52% is 13.6% above this benchmark. Historically, BYD Co's own Return-on-Tangible-Equity has ranged from 4.21 to 33.76 over the past decade. While the company's 10-year median is 13.89 vs. the industry median of 7.50, BYD Co 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.50, based on 1,282 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. BYD Co's current Return-on-Tangible-Equity of 8.52% is 13.6% 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 BYD Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BYD Co's current Return-on-Tangible-Equity is 8.52%, which is 39% below median its own 10-year median of 13.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BYD Co stock overvalued right now?
Based on GuruFocus' analysis, BYD Co (FRA:BY6) is currently considered Fairly Valued. The stock's GF Value™ is €9.81, compared to a current price of €9.55 — trading 2.7% below its estimated fair value. The current Return-on-Tangible-Equity is 8.52%, which is 39% below median its 10-year median of 13.89 and 13.6% above the Vehicles & Parts industry median of 7.50. BYD Co's overall GF Score™ is 92/100 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 BYD Co (FRA:BY6), the current Return-on-Tangible-Equity is 8.52% 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 BYD Co (FRA:BY6) Overvalued in 2026?
Based on GuruFocus' analysis, BYD Co stock appears to be undervalued.
The current stock price of €9.55 is trading 2.7% below its estimated GF Value™ of €9.81.
GuruFocus considers BYD Co to be Fairly Valued.
Key valuation signals for FRA:BY6:
Return-on-Tangible-Equity: 8.52% (39% below median its 10-year median of 13.89)
GF Value™: €9.81 vs. price of €9.55 (2.7% below fair value)
Industry Position: 13.6% above the Vehicles & Parts median (#350 of 1282)
No single metric tells the full story. See the FRA:BY6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1995, BYD is a leading Chinese manufacturer in the design, development, and production of new energy vehicles, or NEVs. In March 2022, the firm discontinued production of internal combustion engine, or ICE, vehicles. Its products primarily target the growing midpriced mass-market segment in China's passenger vehicle market. The company sold about 4.6 million passenger NEVs in 2025, accounting for 30% of the Chinese passenger NEV market. Besides automobile production, the company is also engaged in handset components and assembly services, as well as the rechargeable battery and photovoltaics business. After more than 25 years of development, the company has established over 30 industrial parks worldwide.
92GF Score
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