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KT&GLUX:KT&GC 91 Return-on-Tangible-Equity is 16.57% as of Mar. 2026, which is 35% above its 10-year median of 12.25. GuruFocus rates LUX:KT&GC with a GF Score™ of 91/100 and a GF Value™ of $23.37. The stock has 7 warning signs investors should review. Among 44 Tobacco Products companies, KT&G ranks worse than 61.36% 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. KT&G's annualized net income for the quarter that ended in Mar. 2026 was $1,021 Mil. KT&G's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $6,163 Mil. Therefore, KT&G's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.57%.
The historical rank and industry rank for KT&G's Return-on-Tangible-Equity or its related term are showing as below:
LUX:KT&GC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.95 Med: 12.25 Max: 18.56
Current: 13.48
During the past 13 years, KT&G's highest Return-on-Tangible-Equity was 18.56%. The lowest was 9.95%. And the median was 12.25%.
LUX:KT&GC's Return-on-Tangible-Equity is ranked worse than 61.36% of 44
companies
in the Tobacco Products industry
Industry Median: 25.395
vs LUX:KT&GC: 13.48
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.
KT&G Return-on-Tangible-Equity Related Terms
KT&G Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for KT&G'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.
LUX:KT&GC vs PM, MO, TPB: Return-on-Tangible-Equity Comparison
For the Tobacco subindustry, KT&G'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.
KT&G Return-on-Tangible-Equity vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, KT&G's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where KT&G'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 16.57% mean?
KT&G (LUX:KT&GC) has a Return-on-Tangible-Equity of 16.57% 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 KT&G and its competitors. This is 35% above median its historical median of 12.25. Over the past decade, KT&G's Return-on-Tangible-Equity has ranged from 9.95 to 18.56. According to the industry distribution chart, KT&G ranks #27 out of 44 companies in the Tobacco Products industry, placing it in the top 61.4%.
Is KT&G's Return-on-Tangible-Equity too high?
KT&G's current Return-on-Tangible-Equity of 16.57% is 35% above median its 10-year median of 12.25. Over the past 10 years, this metric has ranged from a low of 9.95 to a high of 18.56. The Tobacco Products industry median Return-on-Tangible-Equity is 25.40. KT&G's value of 16.57% is 34.8% below this industry median. Based on the distribution chart, KT&G ranks #27 out of 44 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, KT&G has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does KT&G's Return-on-Tangible-Equity compare to PM and MO?
According to the Tobacco Products industry distribution chart, KT&G ranks #27 out of 44 companies for Return-on-Tangible-Equity. This places KT&G in the lower half of its industry. The industry median Return-on-Tangible-Equity is 25.40. KT&G's value of 16.57% is 34.8% below this benchmark. Historically, KT&G's own Return-on-Tangible-Equity has ranged from 9.95 to 18.56 over the past decade. While the company's 10-year median is 12.25 vs. the industry median of 25.40, KT&G 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 Tobacco Products company?
The median Return-on-Tangible-Equity among Tobacco Products companies is 25.40, based on 44 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. KT&G's current Return-on-Tangible-Equity of 16.57% is 34.8% 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 KT&G and its competitors. For the Tobacco Products industry, the median Return-on-Tangible-Equity is 25.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KT&G's current Return-on-Tangible-Equity is 16.57%, which is 35% above median its own 10-year median of 12.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KT&G stock overvalued right now?
KT&G (LUX:KT&GC) has a current Return-on-Tangible-Equity of 16.57%. The stock's GF Value™ is $23.37, compared to a current price of $31.80 — trading 36.1% above its estimated fair value. The current Return-on-Tangible-Equity is 16.57%, which is 35% above median its 10-year median of 12.25 and 34.8% below the Tobacco Products industry median of 25.40. KT&G's overall GF Score™ is 91/100 with 7 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 KT&G (LUX:KT&GC), the current Return-on-Tangible-Equity is 16.57% 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 KT&G (LUX:KT&GC) Overvalued in 2026?
Based on GuruFocus' analysis, KT&G stock appears to be overvalued.
The current stock price of $31.80 is trading 36.1% above its estimated GF Value™ of $23.37.
Key valuation signals for LUX:KT&GC:
Return-on-Tangible-Equity: 16.57% (35% above median its 10-year median of 12.25)
GF Value™: $23.37 vs. price of $31.80 (36.1% above fair value)
Industry Position: 34.8% below the Tobacco Products median (#27 of 44)
No single metric tells the full story. See the LUX:KT&GC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KT&G Corp manufactures and sells tobacco products in South Korea. Its flagship cigarette brand is Esse. Other brands include This, The One, Bohem, and Raison. The company has four reportable divisions: Tobacco Business, Ginseng Business, Real Estate Business, and Other Business divisions. The Tobacco division handles tobacco manufacturing and sales, the Ginseng division focuses on manufacturing and sales of red ginseng products, the Real Estate division engages in real estate sales and rental activities, and the Other Business division includes manufacturing and sales of pharmaceuticals and cosmetics. It generates the majority of its revenue from the Tobacco Business.
91GF Score
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