Hostelworld GroupFRA:HSW +5.65%80 Return-on-Tangible-Equity is 248.42% as of Dec. 2025, which is 708% above its 10-year median of 30.74. GuruFocus rates FRA:HSW with a GF Score™ of 80/100 and a GF Value™ of €1.58 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 792 Travel & Leisure companies, Hostelworld Group ranks better than 88.13% 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. Hostelworld Group's annualized net income for the quarter that ended in Dec. 2025 was €11.80 Mil. Hostelworld Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €4.75 Mil. Therefore, Hostelworld Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 248.42%.
The historical rank and industry rank for Hostelworld Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:HSW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -83843.84 Med: 30.74 Max: 178.36
Current: 134.66
During the past 13 years, Hostelworld Group's highest Return-on-Tangible-Equity was 178.36%. The lowest was -83,843.84%. And the median was 30.74%.
FRA:HSW's Return-on-Tangible-Equity is ranked better than 88.13% of 792
companies
in the Travel & Leisure industry
Industry Median: 7.64
vs FRA:HSW: 134.66
Hostelworld Group (FRA:HSW) 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.
Hostelworld Group Return-on-Tangible-Equity Related Terms
Hostelworld Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hostelworld 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.
FRA:HSW vs BKNG, ABNB, RCL: Return-on-Tangible-Equity Comparison
For the Travel Services subindustry, Hostelworld 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.
Hostelworld Group Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hostelworld Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hostelworld Group'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 248.42% mean?
Hostelworld Group (FRA:HSW) has a Return-on-Tangible-Equity of 248.42% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hostelworld Group and its competitors. This is 708% above median its historical median of 30.74. According to the industry distribution chart, Hostelworld Group ranks #94 out of 792 companies in the Travel & Leisure industry, placing it in the top 11.9%.
Is Hostelworld Group's Return-on-Tangible-Equity too high?
Hostelworld Group's current Return-on-Tangible-Equity of 248.42% is 708% above median its 10-year median of 30.74. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.64. Hostelworld Group's value of 248.42% is 3151.6% above this industry median. Based on the distribution chart, Hostelworld Group ranks #94 out of 792 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Hostelworld Group has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hostelworld Group's Return-on-Tangible-Equity compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Hostelworld Group ranks #94 out of 792 companies for Return-on-Tangible-Equity. This places Hostelworld Group in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.64. Hostelworld Group's value of 248.42% is 3151.6% above this benchmark. While the company's 10-year median is 30.74 vs. the industry median of 7.64, Hostelworld 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 7.64, 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. Hostelworld Group's current Return-on-Tangible-Equity of 248.42% is 3151.6% 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 Hostelworld Group 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. Hostelworld Group's current Return-on-Tangible-Equity is 248.42%, which is 708% above median its own 10-year median of 30.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hostelworld Group stock overvalued right now?
Based on GuruFocus' analysis, Hostelworld Group (FRA:HSW) is currently considered Modestly Undervalued. The stock's GF Value™ is €1.58, compared to a current price of €1.31 — trading 17.1% below its estimated fair value. The current Return-on-Tangible-Equity is 248.42%, which is 708% above median its 10-year median of 30.74 and 3151.6% above the Travel & Leisure industry median of 7.64. Hostelworld Group's overall GF Score™ is 80/100 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 Hostelworld Group (FRA:HSW), the current Return-on-Tangible-Equity is 248.42% as of Dec. 2025. 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 Hostelworld Group (FRA:HSW) Overvalued in 2026?
Based on GuruFocus' analysis, Hostelworld Group stock appears to be undervalued.
The current stock price of €1.31 is trading 17.1% below its estimated GF Value™ of €1.58.
GuruFocus considers Hostelworld Group to be Modestly Undervalued.
Key valuation signals for FRA:HSW:
Return-on-Tangible-Equity: 248.42% (708% above median its 10-year median of 30.74)
GF Value™: €1.58 vs. price of €1.31 (17.1% below fair value)
Industry Position: 3151.6% above the Travel & Leisure median (#94 of 792)
No single metric tells the full story. See the FRA:HSW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hostelworld Group PLC is a social network-powered Online Travel Agent (OTA) focused on the hostel market. It has developed and promoted the Hostelworld brand, operating a two-sided marketplace focused on the hostelling category. The Hostel partners load their bed inventory to the company's platform, which it markets to customers via its website and mobile Android and iOS apps. In addition, the Hostelworld platform has a series of social features on its platform that connect travellers in hostels and cities based on their booking data. Geographically, it derives maximum revenue from Europe, followed by Asia, Africa and Oceania, and the Americas.
80GF Score
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