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Viavi SolutionsMEX:VIAV 60 Return-on-Tangible-Equity is 241.27% as of Jun. 2026, which is 2492% above its 10-year median of 9.31. GuruFocus rates MEX:VIAV with a GF Score™ of 60/100 and a GF Value™ of MXN259.44 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,381 Hardware companies, Viavi Solutions ranks worse than 41999.12% 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. Viavi Solutions's annualized net income for the quarter that ended in Jun. 2026 was MXN2,282 Mil. Viavi Solutions's average shareholder tangible equity for the quarter that ended in Jun. 2026 was MXN946 Mil. Therefore, Viavi Solutions's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 241.27%.
The historical rank and industry rank for Viavi Solutions's Return-on-Tangible-Equity or its related term are showing as below:
During the past 13 years, Viavi Solutions's highest Return-on-Tangible-Equity was 31.11%. The lowest was -14.37%. And the median was 9.31%.
MEX:VIAV's Return-on-Tangible-Equity is not ranked *
in the Hardware industry.
Industry Median: 6.12 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
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.
Viavi Solutions Return-on-Tangible-Equity Related Terms
Viavi Solutions Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Viavi Solutions'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:VIAV vs VSAT, AAOI, ZBRA: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Viavi Solutions'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.
Viavi Solutions Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Viavi Solutions's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Viavi Solutions'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 241.27% mean?
Viavi Solutions (MEX:VIAV) has a Return-on-Tangible-Equity of 241.27% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Viavi Solutions and its competitors. This is 2492% above median its historical median of 9.31. According to the industry distribution chart, Viavi Solutions ranks #999999 out of 2381 companies in the Hardware industry.
Is Viavi Solutions' Return-on-Tangible-Equity too high?
Viavi Solutions' current Return-on-Tangible-Equity of 241.27% is 2492% above median its 10-year median of 9.31. The Hardware industry median Return-on-Tangible-Equity is 6.12. Viavi Solutions' value of 241.27% is 3842.3% above this industry median. Based on the distribution chart, Viavi Solutions ranks #999999 out of 2381 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Viavi Solutions has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Viavi Solutions' Return-on-Tangible-Equity compare to VSAT and AAOI?
According to the Hardware industry distribution chart, Viavi Solutions ranks #999999 out of 2381 companies for Return-on-Tangible-Equity. This places Viavi Solutions in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.12. Viavi Solutions' value of 241.27% is 3842.3% above this benchmark. While the company's 10-year median is 9.31 vs. the industry median of 6.12, Viavi Solutions 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 6.12, based on 2,381 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. Viavi Solutions's current Return-on-Tangible-Equity of 241.27% is 3842.3% 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 Viavi Solutions and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 6.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Viavi Solutions's current Return-on-Tangible-Equity is 241.27%, which is 2492% above median its own 10-year median of 9.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Viavi Solutions stock overvalued right now?
Based on GuruFocus' analysis, Viavi Solutions (MEX:VIAV) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN259.44, compared to a current price of MXN786.00 — trading 203% above its estimated fair value. The current Return-on-Tangible-Equity is 241.27%, which is 2492% above median its 10-year median of 9.31 and 3842.3% above the Hardware industry median of 6.12. Viavi Solutions' overall GF Score™ is 60/100 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 Viavi Solutions (MEX:VIAV), the current Return-on-Tangible-Equity is 241.27% as of Jun. 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 Viavi Solutions (MEX:VIAV) Overvalued in 2026?
Based on GuruFocus' analysis, Viavi Solutions stock appears to be overvalued.
The current stock price of MXN786.00 is trading 203% above its estimated GF Value™ of MXN259.44.
GuruFocus considers Viavi Solutions to be Significantly Overvalued.
Key valuation signals for MEX:VIAV:
Return-on-Tangible-Equity: 241.27% (2492% above median its 10-year median of 9.31)
GF Value™: MXN259.44 vs. price of MXN786.00 (203% above fair value)
Industry Position: 3842.3% above the Hardware median (#999999 of 2381)
No single metric tells the full story. See the MEX:VIAV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Viavi Solutions Inc. is an international provider of network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military and avionics customers. The company also offers high-performance thin-film optical coatings, providing light management solutions to anti-counterfeiting, 3D sensing, electronics, automotive, defense, and instrumentation markets. Its operating segments include Network Enablement, Service Enablement, and Optical Security and Performance Products. Geographically, it derives a majority of its revenue from the United States. Additionally, it manufactures and sells optical filters for 3D sensing products that allow facial recognition security authentication for mobile devices.
60GF Score
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