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PT Merdeka Battery Materials TbkISX:MBMA +2.00%44 Return-on-Tangible-Equity is 9.71% as of Mar. 2026, which is 609% above its 10-year median of 1.37. GuruFocus rates ISX:MBMA with a GF Score™ of 44/100 and a GF Value™ of Rp821.82 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,381 Metals & Mining companies, PT Merdeka Battery Materials Tbk ranks better than 77.24% on this metric.
The historical rank and industry rank for PT Merdeka Battery Materials Tbk's Return-on-Tangible-Equity or its related term are showing as below:
ISX:MBMA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.16 Med: 1.37 Max: 6.86
Current: 5.2
During the past 7 years, PT Merdeka Battery Materials Tbk's highest Return-on-Tangible-Equity was 6.86%. The lowest was -0.16%. And the median was 1.37%.
ISX:MBMA's Return-on-Tangible-Equity is ranked better than 77.24% of 2381
companies
in the Metals & Mining industry
Industry Median: -16.33
vs ISX:MBMA: 5.20
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.
PT Merdeka Battery Materials Tbk Return-on-Tangible-Equity Related Terms
PT Merdeka Battery Materials Tbk 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.
ISX:MBMA vs HL, SIND: Return-on-Tangible-Equity Comparison
For the Other Precious Metals & Mining subindustry, PT Merdeka Battery Materials Tbk'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.
PT Merdeka Battery Materials Tbk Return-on-Tangible-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, PT Merdeka Battery Materials Tbk's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PT Merdeka Battery Materials Tbk'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 9.71% mean?
PT Merdeka Battery Materials Tbk (ISX:MBMA) has a Return-on-Tangible-Equity of 9.71% 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 PT Merdeka Battery Materials Tbk and its competitors. This is 609% above median its historical median of 1.37. According to the industry distribution chart, PT Merdeka Battery Materials Tbk ranks #542 out of 2381 companies in the Metals & Mining industry, placing it in the top 22.8%.
Is PT Merdeka Battery Materials Tbk's Return-on-Tangible-Equity too high?
PT Merdeka Battery Materials Tbk's current Return-on-Tangible-Equity of 9.71% is 609% above median its 10-year median of 1.37. Based on the distribution chart, PT Merdeka Battery Materials Tbk ranks #542 out of 2381 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, PT Merdeka Battery Materials Tbk has a GF Score™ of 44/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Merdeka Battery Materials Tbk's Return-on-Tangible-Equity compare to HL and SIND?
According to the Metals & Mining industry distribution chart, PT Merdeka Battery Materials Tbk ranks #542 out of 2381 companies for Return-on-Tangible-Equity. This places PT Merdeka Battery Materials Tbk in the top 23% of its industry — outperforming the majority of peers. 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 Metals & Mining company?
A good Return-on-Tangible-Equity depends on the Metals & Mining industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 PT Merdeka Battery Materials Tbk and its competitors. PT Merdeka Battery Materials Tbk's current Return-on-Tangible-Equity is 9.71%, which is 609% above median its own 10-year median of 1.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Merdeka Battery Materials Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Merdeka Battery Materials Tbk (ISX:MBMA) is currently considered Significantly Undervalued. The stock's GF Value™ is Rp821.82, compared to a current price of Rp510.00 — trading 37.9% below its estimated fair value. The current Return-on-Tangible-Equity is 9.71%, which is 609% above median its 10-year median of 1.37. PT Merdeka Battery Materials Tbk's overall GF Score™ is 44/100 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 PT Merdeka Battery Materials Tbk (ISX:MBMA), the current Return-on-Tangible-Equity is 9.71% 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 PT Merdeka Battery Materials Tbk (ISX:MBMA) Overvalued in 2026?
Based on GuruFocus' analysis, PT Merdeka Battery Materials Tbk stock appears to be undervalued.
The current stock price of Rp510.00 is trading 37.9% below its estimated GF Value™ of Rp821.82.
GuruFocus considers PT Merdeka Battery Materials Tbk to be Significantly Undervalued.
Key valuation signals for ISX:MBMA:
Return-on-Tangible-Equity: 9.71% (609% above median its 10-year median of 1.37)
GF Value™: Rp821.82 vs. price of Rp510.00 (37.9% below fair value)
No single metric tells the full story. See the ISX:MBMA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Merdeka Battery Materials Tbk Business Description
PT Merdeka Battery Materials Tbk is an integrated battery materials and nickel processing company focused on the electric vehicle (EV) battery value chain in Indonesia. The company engages in nickel mining, smelting, and downstream battery material processing activities. Its business operations include the SCM Mine, RKEF smelters, Nickel Matte operations, AIM Project, IKIP industrial area development, and HPAL projects. The company operates through Mining, Manufacturing, and Other segments, with the majority of revenue generated from the Manufacturing segment.
44GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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