H World Group (FRA:CL4) Return-on-Tangible-Equity: 244.00% (As of Mar. 2026) — 575% Above Median


FRA:CL4 H World Group Ltd FRA:CL4
82 GF Score
Price €3.68
GF Value €3.96
Valuation Fairly Valued
! 1 Warning Sign
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What is H World Group Return-on-Tangible-Equity?

H World Group FRA:CL4 +1.10% 82 Return-on-Tangible-Equity is 244.00% as of Mar. 2026, which is 575% above its 10-year median of 36.14. GuruFocus rates FRA:CL4 with a GF Score™ of 82/100 and a GF Value™ of €3.96 (Fairly Valued). The stock has 1 warning sign investors should review. Among 797 Travel & Leisure companies, H World Group ranks better than 89.46% 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. H World Group's annualized net income for the quarter that ended in Mar. 2026 was €410 Mil. H World Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €168 Mil. Therefore, H World Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 244.00%.

The historical rank and industry rank for H World Group's Return-on-Tangible-Equity or its related term are showing as below:

FRA:CL4' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -237.72   Med: 36.14   Max: 456.4
Current: 456.4

During the past 13 years, H World Group's highest Return-on-Tangible-Equity was 456.40%. The lowest was -237.72%. And the median was 36.14%.

FRA:CL4's Return-on-Tangible-Equity is ranked better than
89.46% of 797 companies
in the Travel & Leisure industry
Industry Median: 7.43 vs FRA:CL4: 456.40

H World Group  (FRA:CL4) 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.


H World Group Return-on-Tangible-Equity Related Terms


H World Group Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for H World Group'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.

H World Group Return-on-Tangible-Equity Chart

H World Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only -245.73 0.00 Negative Tangible Equity 182.86 232.86

H World Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 323.60 797.21 452.99 278.88 244.00

FRA:CL4 vs H, WH, CHH: Return-on-Tangible-Equity Comparison

For the Lodging subindustry, H World Group'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.


H World Group Return-on-Tangible-Equity vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, H World Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where H World Group's Return-on-Tangible-Equity falls into.


FRA:CL4
82GF Score
H World Group Ltd FRA:CL4
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

H World Group Return-on-Tangible-Equity Calculation

H World Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=615.959/( (263.124+265.905 )/ 2 )
=615.959/264.5145
=232.86 %

H World Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=410.152/( (265.905+70.283)/ 2 )
=410.152/168.094
=244.00 %

* 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 244.00% mean?
H World Group (FRA:CL4) has a Return-on-Tangible-Equity of 244.00% 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 H World Group and its competitors. This is 575% above median its historical median of 36.14. According to the industry distribution chart, H World Group ranks #84 out of 797 companies in the Travel & Leisure industry, placing it in the top 10.5%.
Is H World Group's Return-on-Tangible-Equity too high?
H World Group's current Return-on-Tangible-Equity of 244.00% is 575% above median its 10-year median of 36.14. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.43. H World Group's value of 244.00% is 3184% above this industry median. Based on the distribution chart, H World Group ranks #84 out of 797 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, H World Group has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H World Group's Return-on-Tangible-Equity compare to H and WH?
According to the Travel & Leisure industry distribution chart, H World Group ranks #84 out of 797 companies for Return-on-Tangible-Equity. This places H World Group in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.43. H World Group's value of 244.00% is 3184% above this benchmark. While the company's 10-year median is 36.14 vs. the industry median of 7.43, H World Group 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.43, based on 797 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. H World Group's current Return-on-Tangible-Equity of 244.00% is 3184% 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 H World Group and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H World Group's current Return-on-Tangible-Equity is 244.00%, which is 575% above median its own 10-year median of 36.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H World Group stock overvalued right now?
Based on GuruFocus' analysis, H World Group (FRA:CL4) is currently considered Fairly Valued. The stock's GF Value™ is €3.96, compared to a current price of €3.68 — trading 7.1% below its estimated fair value. The current Return-on-Tangible-Equity is 244.00%, which is 575% above median its 10-year median of 36.14 and 3184% above the Travel & Leisure industry median of 7.43. H World Group's overall GF Score™ is 82/100 with 1 warning sign 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 H World Group (FRA:CL4), the current Return-on-Tangible-Equity is 244.00% 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 H World Group (FRA:CL4) Overvalued in 2026?

Based on GuruFocus' analysis, H World Group stock appears to be undervalued. The current stock price of €3.68 is trading 7.1% below its estimated GF Value™ of €3.96. GuruFocus considers H World Group to be Fairly Valued.

Key valuation signals for FRA:CL4:

  • Return-on-Tangible-Equity: 244.00% (575% above median its 10-year median of 36.14)
  • GF Value™: €3.96 vs. price of €3.68 (7.1% below fair value)
  • GF Score™: 82/100 with 1 warning sign
  • Industry Position: 3184% above the Travel & Leisure median (#84 of 797)

No single metric tells the full story. See the FRA:CL4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


H World Group Business Description

Address No. 1299 Fenghua Road, Jiading District, Shanghai, CHN, 201803
H World Group Ltd a foremost, fast-growing multi-brand hotel group with international operations. The principal business activities of the Company are to develop and operate leased and owned, manachised and franchised hotels mainly in the PRC or PRC Mainland. The Group has two operating segments which are legacy Huazhu and legacy DH according to the way management intends to evaluate results and allocate resources within the Group. The majority of revenue comes from legacy Huazhu. The company has presence in Greater China and also Outside Greater China.
82GF Score

Get the complete analysis for FRA:CL4

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.68
Price
€3.96
GF Value