Callaway Golf CoFRA:CLY +0.09%72 Return-on-Tangible-Equity is 29.87% as of Mar. 2026, which is 13% above its 10-year median of 26.48. GuruFocus rates FRA:CLY with a GF Score™ of 72/100 and a GF Value™ of €10.60 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 792 Travel & Leisure companies, Callaway Golf Co ranks worse than 93.56% 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. Callaway Golf Co's annualized net income for the quarter that ended in Mar. 2026 was €322 Mil. Callaway Golf Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,078 Mil. Therefore, Callaway Golf Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 29.87%.
The historical rank and industry rank for Callaway Golf Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:CLY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -146.25 Med: 26.48 Max: 195.84
Current: -34.96
During the past 13 years, Callaway Golf Co's highest Return-on-Tangible-Equity was 195.84%. The lowest was -146.25%. And the median was 26.48%.
FRA:CLY's Return-on-Tangible-Equity is ranked worse than 93.56% of 792
companies
in the Travel & Leisure industry
Industry Median: 7.64
vs FRA:CLY: -34.96
Callaway Golf Co (FRA:CLY) 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.
Callaway Golf Co Return-on-Tangible-Equity Related Terms
Callaway Golf Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Callaway Golf 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:CLY vs YETI, OSW, MAT: Return-on-Tangible-Equity Comparison
For the Leisure subindustry, Callaway Golf 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.
Callaway Golf Co Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Callaway Golf Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Callaway Golf 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 29.87% mean?
Callaway Golf Co (FRA:CLY) has a Return-on-Tangible-Equity of 29.87% 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 Callaway Golf Co and its competitors. This is 13% above median its historical median of 26.48. According to the industry distribution chart, Callaway Golf Co ranks #741 out of 792 companies in the Travel & Leisure industry, placing it in the top 93.6%.
Is Callaway Golf Co's Return-on-Tangible-Equity too high?
Callaway Golf Co's current Return-on-Tangible-Equity of 29.87% is 13% above median its 10-year median of 26.48. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.64. Callaway Golf Co's value of 29.87% is 291% above this industry median. Based on the distribution chart, Callaway Golf Co ranks #741 out of 792 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Callaway Golf Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Callaway Golf Co's Return-on-Tangible-Equity compare to YETI and OSW?
According to the Travel & Leisure industry distribution chart, Callaway Golf Co ranks #741 out of 792 companies for Return-on-Tangible-Equity. This places Callaway Golf Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.64. Callaway Golf Co's value of 29.87% is 291% above this benchmark. While the company's 10-year median is 26.48 vs. the industry median of 7.64, Callaway Golf 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.64, based on 792 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. Callaway Golf Co's current Return-on-Tangible-Equity of 29.87% is 291% 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 Callaway Golf Co and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Callaway Golf Co's current Return-on-Tangible-Equity is 29.87%, which is 13% above median its own 10-year median of 26.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Callaway Golf Co stock overvalued right now?
Based on GuruFocus' analysis, Callaway Golf Co (FRA:CLY) is currently considered Significantly Overvalued. The stock's GF Value™ is €10.60, compared to a current price of €15.92 — trading 50.2% above its estimated fair value. The current Return-on-Tangible-Equity is 29.87%, which is 13% above median its 10-year median of 26.48 and 291% above the Travel & Leisure industry median of 7.64. Callaway Golf Co's overall GF Score™ is 72/100 with 11 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 Callaway Golf Co (FRA:CLY), the current Return-on-Tangible-Equity is 29.87% 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 Callaway Golf Co (FRA:CLY) Overvalued in 2026?
Based on GuruFocus' analysis, Callaway Golf Co stock appears to be overvalued.
The current stock price of €15.92 is trading 50.2% above its estimated GF Value™ of €10.60.
GuruFocus considers Callaway Golf Co to be Significantly Overvalued.
Key valuation signals for FRA:CLY:
Return-on-Tangible-Equity: 29.87% (13% above median its 10-year median of 26.48)
GF Value™: €10.60 vs. price of €15.92 (50.2% above fair value)
Industry Position: 291% above the Travel & Leisure median (#741 of 792)
No single metric tells the full story. See the FRA:CLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Callaway Golf Co is a golf equipment, gear and apparel company with a portfolio of world-wide brands, including Callaway Golf, Odyssey, TravisMathew, and OGIO. Callaway designs, manufactures, and sells high-performance golf clubs, golf balls, apparel, bags, and other accessories-setting the standard for performance in the game of golf. The company has two operating and reportable business segments: Golf Equipment and Apparel, Gear and Other. Geographically, the company operates in United States, Europe, Asia, and Rest of World, of which it derives maximum revenue from United States.
72GF Score
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