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Agricultural Bank of ChinaFRA:EK7 -0.03%70 Return-on-Tangible-Equity is 9.48% as of Mar. 2026, which is 10% below its 10-year median of 10.54. GuruFocus rates FRA:EK7 with a GF Score™ of 70/100 and a GF Value™ of €0.51 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,523 Banks companies, Agricultural Bank of China ranks worse than 61.33% 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. Agricultural Bank of China's annualized net income for the quarter that ended in Mar. 2026 was €37,745 Mil. Agricultural Bank of China's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €398,252 Mil. Therefore, Agricultural Bank of China's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.48%.
The historical rank and industry rank for Agricultural Bank of China's Return-on-Tangible-Equity or its related term are showing as below:
FRA:EK7'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.3 Med: 10.54 Max: 14.87
Current: 9.31
During the past 13 years, Agricultural Bank of China's highest Return-on-Tangible-Equity was 14.87%. The lowest was 9.30%. And the median was 10.54%.
FRA:EK7's Return-on-Tangible-Equity is ranked worse than 61.33% of 1523
companies
in the Banks industry
Industry Median: 11.23
vs FRA:EK7: 9.31
Agricultural Bank of China (FRA:EK7) 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.
Agricultural Bank of China Return-on-Tangible-Equity Related Terms
Agricultural Bank of China Return-on-Tangible-Equity Historical Data
* 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.
Agricultural Bank of China Return-on-Tangible-Equity Chart
FRA:EK7 vs JPM, BAC, WFC: Return-on-Tangible-Equity Comparison
For the Banks - Diversified subindustry, Agricultural Bank of China'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.
Agricultural Bank of China Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Agricultural Bank of China's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Agricultural Bank of China'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 9.48% mean?
Agricultural Bank of China (FRA:EK7) has a Return-on-Tangible-Equity of 9.48% 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 Agricultural Bank of China and its competitors. This is 10% below median its historical median of 10.54. Over the past decade, Agricultural Bank of China's Return-on-Tangible-Equity has ranged from 9.30 to 14.87. According to the industry distribution chart, Agricultural Bank of China ranks #934 out of 1523 companies in the Banks industry, placing it in the top 61.3%.
Is Agricultural Bank of China's Return-on-Tangible-Equity too high?
Agricultural Bank of China's current Return-on-Tangible-Equity of 9.48% is 10% below median its 10-year median of 10.54. Over the past 10 years, this metric has ranged from a low of 9.30 to a high of 14.87. The Banks industry median Return-on-Tangible-Equity is 11.23. Agricultural Bank of China's value of 9.48% is 15.6% below this industry median. Based on the distribution chart, Agricultural Bank of China ranks #934 out of 1523 companies in the Banks industry, which is below the industry midpoint. Overall, Agricultural Bank of China has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Agricultural Bank of China's Return-on-Tangible-Equity compare to JPM and BAC?
According to the Banks industry distribution chart, Agricultural Bank of China ranks #934 out of 1523 companies for Return-on-Tangible-Equity. This places Agricultural Bank of China in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.23. Agricultural Bank of China's value of 9.48% is 15.6% below this benchmark. Historically, Agricultural Bank of China's own Return-on-Tangible-Equity has ranged from 9.30 to 14.87 over the past decade. While the company's 10-year median is 10.54 vs. the industry median of 11.23, Agricultural Bank of China has consistently been below 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.23, based on 1,523 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. Agricultural Bank of China's current Return-on-Tangible-Equity of 9.48% is 15.6% below 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 Agricultural Bank of China and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Agricultural Bank of China's current Return-on-Tangible-Equity is 9.48%, which is 10% below median its own 10-year median of 10.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Agricultural Bank of China stock overvalued right now?
Based on GuruFocus' analysis, Agricultural Bank of China (FRA:EK7) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.51, compared to a current price of €0.60 — trading 18.1% above its estimated fair value. The current Return-on-Tangible-Equity is 9.48%, which is 10% below median its 10-year median of 10.54 and 15.6% below the Banks industry median of 11.23. Agricultural Bank of China's overall GF Score™ is 70/100 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 Agricultural Bank of China (FRA:EK7), the current Return-on-Tangible-Equity is 9.48% 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 Agricultural Bank of China (FRA:EK7) Overvalued in 2026?
Based on GuruFocus' analysis, Agricultural Bank of China stock appears to be overvalued.
The current stock price of €0.60 is trading 18.1% above its estimated GF Value™ of €0.51.
GuruFocus considers Agricultural Bank of China to be Modestly Overvalued.
Key valuation signals for FRA:EK7:
Return-on-Tangible-Equity: 9.48% (10% below median its 10-year median of 10.54)
GF Value™: €0.51 vs. price of €0.60 (18.1% above fair value)
Industry Position: 15.6% below the Banks median (#934 of 1523)
No single metric tells the full story. See the FRA:EK7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
As one of the Big Four banks, ABC is headquartered in Beijing. The bank evolved from a state-owned specialized bank to a state-controlled commercial bank. It was listed on the Hong Kong and Shanghai Stock Exchanges in 2010. ABC operates a more than 22,000-branch network in China, providing corporate and retail banking products and services, and carries out treasury operations for its accounts or for its customers. Shareholders Central Huijin, China's state-owned investment company, and the Ministry of Finance own 40.14% and 35.29%, respectively. Corporate banking, retail banking, and wholesale banking accounted for 36%, 53%, and 7% of total revenue in 2025, respectively. Rural banking and urban banking contributed 49.6% and 50.4%, respectively, of total revenue during the same period.
70GF Score
Get the complete analysis for FRA:EK7
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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