AppLovinLIM:APP 34 Return-on-Tangible-Equity is 1,440.81% as of Mar. 2026. GuruFocus rates LIM:APP with a GF Score™ of 34/100 and a GF Value™ of $523.17 (Fairly Valued). The stock has 1 warning sign investors should review. Among 869 Media - Diversified companies, AppLovin ranks better than 99.88% 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. AppLovin's annualized net income for the quarter that ended in Mar. 2026 was $4,822 Mil. AppLovin's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $335 Mil. Therefore, AppLovin's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1,440.81%.
The historical rank and industry rank for AppLovin's Return-on-Tangible-Equity or its related term are showing as below:
LIM:APP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
LIM:APP's Return-on-Tangible-Equity is ranked better than 99.88% of 869
companies
in the Media - Diversified industry
Industry Median: 5.46
vs LIM:APP: Negative Tangible Equity
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.
AppLovin Return-on-Tangible-Equity Related Terms
AppLovin Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AppLovin'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.
LIM:APP vs OMC, TTD, MGNI: Return-on-Tangible-Equity Comparison
For the Advertising Agencies subindustry, AppLovin'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.
AppLovin Return-on-Tangible-Equity vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, AppLovin's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AppLovin'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 1,440.81% mean?
AppLovin (LIM:APP) has a Return-on-Tangible-Equity of 1,440.81% 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 AppLovin and its competitors. According to the industry distribution chart, AppLovin ranks #1 out of 869 companies in the Media - Diversified industry, placing it in the top 0.099999999999994%.
Is AppLovin's Return-on-Tangible-Equity too high?
AppLovin's current Return-on-Tangible-Equity is 1,440.81%. The Media - Diversified industry median Return-on-Tangible-Equity is 5.46. AppLovin's value of 1,440.81% is 26288.5% above this industry median. Based on the distribution chart, AppLovin ranks #1 out of 869 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, AppLovin has a GF Score™ of 34/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AppLovin's Return-on-Tangible-Equity compare to OMC and TTD?
According to the Media - Diversified industry distribution chart, AppLovin ranks #1 out of 869 companies for Return-on-Tangible-Equity. This places AppLovin in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.46. AppLovin's value of 1,440.81% is 26288.5% above this benchmark. 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 Media - Diversified company?
The median Return-on-Tangible-Equity among Media - Diversified companies is 5.46, based on 869 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. AppLovin's current Return-on-Tangible-Equity of 1,440.81% is 26288.5% 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 AppLovin and its competitors. For the Media - Diversified industry, the median Return-on-Tangible-Equity is 5.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AppLovin's current Return-on-Tangible-Equity is 1,440.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AppLovin stock overvalued right now?
Based on GuruFocus' analysis, AppLovin (LIM:APP) is currently considered Fairly Valued. The stock's GF Value™ is $523.17, compared to a current price of $476.03 — trading 9% below its estimated fair value. The current Return-on-Tangible-Equity is 1,440.81% and 26288.5% above the Media - Diversified industry median of 5.46. AppLovin's overall GF Score™ is 34/100 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 AppLovin (LIM:APP), the current Return-on-Tangible-Equity is 1,440.81% 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 AppLovin (LIM:APP) Overvalued in 2026?
Based on GuruFocus' analysis, AppLovin stock appears to be undervalued.
The current stock price of $476.03 is trading 9% below its estimated GF Value™ of $523.17.
GuruFocus considers AppLovin to be Fairly Valued.
Key valuation signals for LIM:APP:
Return-on-Tangible-Equity: 1,440.81%
GF Value™: $523.17 vs. price of $476.03 (9% below fair value)
Industry Position: 26288.5% above the Media - Diversified median (#1 of 869)
No single metric tells the full story. See the LIM:APP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AppLovin is a vertically integrated advertising technology company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange facilitating transactions between the two. About 80% of AppLovin's revenue comes from the DSP, AppDiscovery, while the remainder comes from the SSP, Max. AppLovin's primary tool for future growth is AXON 2, which is an ad optimizer operating within the DSP that allows advertisers to place ads according to specified return thresholds.
34GF Score
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