Terna SpAMIL:TRN +0.49%83 Return-on-Tangible-Equity is 15.68% as of Mar. 2026, which is 24% below its 10-year median of 20.50. GuruFocus rates MIL:TRN with a GF Score™ of 83/100 and a GF Value™ of €9.89 (Fairly Valued). The stock has 3 warning signs investors should review. Among 496 Utilities - Regulated companies, Terna SpA ranks better than 68.15% 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. Terna SpA's annualized net income for the quarter that ended in Mar. 2026 was €1,106 Mil. Terna SpA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €7,052 Mil. Therefore, Terna SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.68%.
The historical rank and industry rank for Terna SpA's Return-on-Tangible-Equity or its related term are showing as below:
MIL:TRN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.36 Med: 20.5 Max: 21.79
Current: 16.4
During the past 13 years, Terna SpA's highest Return-on-Tangible-Equity was 21.79%. The lowest was 16.36%. And the median was 20.50%.
MIL:TRN's Return-on-Tangible-Equity is ranked better than 68.15% of 496
companies
in the Utilities - Regulated industry
Industry Median: 10.935
vs MIL:TRN: 16.40
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.
Terna SpA Return-on-Tangible-Equity Related Terms
Terna SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Terna SpA'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.
MIL:TRN vs NEE, SO, DUK: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Electric subindustry, Terna SpA'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.
Terna SpA Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Terna SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Terna SpA'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 15.68% mean?
Terna SpA (MIL:TRN) has a Return-on-Tangible-Equity of 15.68% 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 Terna SpA and its competitors. This is 24% below median its historical median of 20.50. Over the past decade, Terna SpA's Return-on-Tangible-Equity has ranged from 16.36 to 21.79. According to the industry distribution chart, Terna SpA ranks #158 out of 496 companies in the Utilities - Regulated industry, placing it in the top 31.9%.
Is Terna SpA's Return-on-Tangible-Equity too high?
Terna SpA's current Return-on-Tangible-Equity of 15.68% is 24% below median its 10-year median of 20.50. Over the past 10 years, this metric has ranged from a low of 16.36 to a high of 21.79. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.94. Terna SpA's value of 15.68% is 43.4% above this industry median. Based on the distribution chart, Terna SpA ranks #158 out of 496 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Terna SpA has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Terna SpA's Return-on-Tangible-Equity compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Terna SpA ranks #158 out of 496 companies for Return-on-Tangible-Equity. This puts Terna SpA in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.94. Terna SpA's value of 15.68% is 43.4% above this benchmark. Historically, Terna SpA's own Return-on-Tangible-Equity has ranged from 16.36 to 21.79 over the past decade. While the company's 10-year median is 20.50 vs. the industry median of 10.94, Terna SpA 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 Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.94, based on 496 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. Terna SpA's current Return-on-Tangible-Equity of 15.68% is 43.4% 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 Terna SpA and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terna SpA's current Return-on-Tangible-Equity is 15.68%, which is 24% below median its own 10-year median of 20.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terna SpA stock overvalued right now?
Based on GuruFocus' analysis, Terna SpA (MIL:TRN) is currently considered Fairly Valued. The stock's GF Value™ is €9.89, compared to a current price of €10.25 — trading 3.6% above its estimated fair value. The current Return-on-Tangible-Equity is 15.68%, which is 24% below median its 10-year median of 20.50 and 43.4% above the Utilities - Regulated industry median of 10.94. Terna SpA's overall GF Score™ is 83/100 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 Terna SpA (MIL:TRN), the current Return-on-Tangible-Equity is 15.68% 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 Terna SpA (MIL:TRN) Overvalued in 2026?
Based on GuruFocus' analysis, Terna SpA stock appears to be overvalued.
The current stock price of €10.25 is trading 3.6% above its estimated GF Value™ of €9.89.
GuruFocus considers Terna SpA to be Fairly Valued.
Key valuation signals for MIL:TRN:
Return-on-Tangible-Equity: 15.68% (24% below median its 10-year median of 20.50)
GF Value™: €9.89 vs. price of €10.25 (3.6% above fair value)
Industry Position: 43.4% above the Utilities - Regulated median (#158 of 496)
No single metric tells the full story. See the MIL:TRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Terna SpA is an electricity transmission system operator that owns virtually all of the Italian National Transmission Grid. With a monopoly under an Italian government license, Terna transmits and dispatches electricity throughout the country. It is also responsible for the planning, construction, and maintenance of the nation's electrical grid. Terna segments its operations into its Regulated Activities, Non-Regulated Activities, and International Activities. The company generates the vast majority of its revenue from charging transmission fees as a part of its Regulated Activities. Under its Non-Regulated Activities, Terna mainly produces and sells electricity transformers. The company has also made efforts to expand its operations into Italy's neighboring countries and North Africa.
83GF Score
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