Dassault AviationMEX:AM 82 Return-on-Tangible-Equity is 20.38% as of Dec. 2025, which is 49% above its 10-year median of 13.72. GuruFocus rates MEX:AM with a GF Score™ of 82/100 and a GF Value™ of MXN7,478.38 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 334 Aerospace & Defense companies, Dassault Aviation ranks better than 63.17% 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. Dassault Aviation's annualized net income for the quarter that ended in Dec. 2025 was MXN27,112 Mil. Dassault Aviation's average shareholder tangible equity for the quarter that ended in Dec. 2025 was MXN133,056 Mil. Therefore, Dassault Aviation's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 20.38%.
The historical rank and industry rank for Dassault Aviation's Return-on-Tangible-Equity or its related term are showing as below:
MEX:AM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.91 Med: 13.72 Max: 18.14
Current: 15.76
During the past 13 years, Dassault Aviation's highest Return-on-Tangible-Equity was 18.14%. The lowest was 6.91%. And the median was 13.72%.
MEX:AM's Return-on-Tangible-Equity is ranked better than 63.17% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs MEX:AM: 15.76
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.
Dassault Aviation Return-on-Tangible-Equity Related Terms
Dassault Aviation Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Dassault Aviation'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.
MEX:AM vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Dassault Aviation'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.
Dassault Aviation Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Dassault Aviation's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dassault Aviation'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 20.38% mean?
Dassault Aviation (MEX:AM) has a Return-on-Tangible-Equity of 20.38% 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 Dassault Aviation and its competitors. This is 49% above median its historical median of 13.72. Over the past decade, Dassault Aviation's Return-on-Tangible-Equity has ranged from 6.91 to 18.14. According to the industry distribution chart, Dassault Aviation ranks #123 out of 334 companies in the Aerospace & Defense industry, placing it in the top 36.8%.
Is Dassault Aviation's Return-on-Tangible-Equity too high?
Dassault Aviation's current Return-on-Tangible-Equity of 20.38% is 49% above median its 10-year median of 13.72. Over the past 10 years, this metric has ranged from a low of 6.91 to a high of 18.14. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Dassault Aviation's value of 20.38% is 148.7% above this industry median. Based on the distribution chart, Dassault Aviation ranks #123 out of 334 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Dassault Aviation has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dassault Aviation's Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Dassault Aviation ranks #123 out of 334 companies for Return-on-Tangible-Equity. This puts Dassault Aviation in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.20. Dassault Aviation's value of 20.38% is 148.7% above this benchmark. Historically, Dassault Aviation's own Return-on-Tangible-Equity has ranged from 6.91 to 18.14 over the past decade. While the company's 10-year median is 13.72 vs. the industry median of 8.20, Dassault Aviation 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 an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 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. Dassault Aviation's current Return-on-Tangible-Equity of 20.38% is 148.7% 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 Dassault Aviation and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dassault Aviation's current Return-on-Tangible-Equity is 20.38%, which is 49% above median its own 10-year median of 13.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dassault Aviation stock overvalued right now?
Based on GuruFocus' analysis, Dassault Aviation (MEX:AM) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN7,478.38, compared to a current price of MXN5,709.86 — trading 23.6% below its estimated fair value. The current Return-on-Tangible-Equity is 20.38%, which is 49% above median its 10-year median of 13.72 and 148.7% above the Aerospace & Defense industry median of 8.20. Dassault Aviation's overall GF Score™ is 82/100 with 3 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 Dassault Aviation (MEX:AM), the current Return-on-Tangible-Equity is 20.38% 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 Dassault Aviation (MEX:AM) Overvalued in 2026?
Based on GuruFocus' analysis, Dassault Aviation stock appears to be undervalued.
The current stock price of MXN5,709.86 is trading 23.6% below its estimated GF Value™ of MXN7,478.38.
GuruFocus considers Dassault Aviation to be Modestly Undervalued.
Key valuation signals for MEX:AM:
Return-on-Tangible-Equity: 20.38% (49% above median its 10-year median of 13.72)
GF Value™: MXN7,478.38 vs. price of MXN5,709.86 (23.6% below fair value)
Industry Position: 148.7% above the Aerospace & Defense median (#123 of 334)
No single metric tells the full story. See the MEX:AM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dassault Aviation, controlled by the French Dassault Group, designs, builds, and maintains military fighter jets and is one of the largest manufacturers of business jets. It holds a 26.6% stake in defense electronics group Thales, whose earnings contribution accounts for roughly half of Dassault's adjusted net income. In 2025, Dassault Aviation generated EUR 7.4 billion in revenue with over 15,000 employees. About 63% of revenue comes from defense aircraft and services, while Falcon business jets generate the remaining 37%.
82GF Score
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