AAVAS FinanciersNSE:AAVAS +1.37%84 Return-on-Tangible-Equity is 14.54% as of Mar. 2026, which is 5% above its 10-year median of 13.84. GuruFocus rates NSE:AAVAS with a GF Score™ of 84/100 and a GF Value™ of ₹2,146.77 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,526 Banks companies, AAVAS Financiers ranks better than 69.33% 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. AAVAS Financiers's annualized net income for the quarter that ended in Mar. 2026 was ₹7,267 Mil. AAVAS Financiers's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹49,965 Mil. Therefore, AAVAS Financiers's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.54%.
The historical rank and industry rank for AAVAS Financiers's Return-on-Tangible-Equity or its related term are showing as below:
NSE:AAVAS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.34 Med: 13.84 Max: 14.28
Current: 14.1
During the past 13 years, AAVAS Financiers's highest Return-on-Tangible-Equity was 14.28%. The lowest was 10.34%. And the median was 13.84%.
NSE:AAVAS's Return-on-Tangible-Equity is ranked better than 69.33% of 1526
companies
in the Banks industry
Industry Median: 11.195
vs NSE:AAVAS: 14.10
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.
AAVAS Financiers Return-on-Tangible-Equity Related Terms
AAVAS Financiers Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AAVAS Financiers'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.
NSE:AAVAS vs RKT, FNMA, PFSI: Return-on-Tangible-Equity Comparison
For the Mortgage Finance subindustry, AAVAS Financiers'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.
AAVAS Financiers Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, AAVAS Financiers's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AAVAS Financiers'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 14.54% mean?
AAVAS Financiers (NSE:AAVAS) has a Return-on-Tangible-Equity of 14.54% 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 AAVAS Financiers and its competitors. This is near median its historical median of 13.84. Over the past decade, AAVAS Financiers' Return-on-Tangible-Equity has ranged from 10.34 to 14.28. According to the industry distribution chart, AAVAS Financiers ranks #468 out of 1526 companies in the Banks industry, placing it in the top 30.7%.
Is AAVAS Financiers' Return-on-Tangible-Equity too high?
AAVAS Financiers' current Return-on-Tangible-Equity of 14.54% is near median its 10-year median of 13.84. Over the past 10 years, this metric has ranged from a low of 10.34 to a high of 14.28. The Banks industry median Return-on-Tangible-Equity is 11.20. AAVAS Financiers' value of 14.54% is 29.9% above this industry median. Based on the distribution chart, AAVAS Financiers ranks #468 out of 1526 companies in the Banks industry, which is above the industry midpoint. Overall, AAVAS Financiers has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AAVAS Financiers' Return-on-Tangible-Equity compare to RKT and FNMA?
According to the Banks industry distribution chart, AAVAS Financiers ranks #468 out of 1526 companies for Return-on-Tangible-Equity. This puts AAVAS Financiers in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. AAVAS Financiers' value of 14.54% is 29.9% above this benchmark. Historically, AAVAS Financiers' own Return-on-Tangible-Equity has ranged from 10.34 to 14.28 over the past decade. While the company's 10-year median is 13.84 vs. the industry median of 11.20, AAVAS Financiers 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,526 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. AAVAS Financiers's current Return-on-Tangible-Equity of 14.54% is 29.9% 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 AAVAS Financiers and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAVAS Financiers's current Return-on-Tangible-Equity is 14.54%, which is near median its own 10-year median of 13.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAVAS Financiers stock overvalued right now?
Based on GuruFocus' analysis, AAVAS Financiers (NSE:AAVAS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,146.77, compared to a current price of ₹1,525.90 — trading 28.9% below its estimated fair value. The current Return-on-Tangible-Equity is 14.54%, which is near median its 10-year median of 13.84 and 29.9% above the Banks industry median of 11.20. AAVAS Financiers' overall GF Score™ is 84/100 with 5 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 AAVAS Financiers (NSE:AAVAS), the current Return-on-Tangible-Equity is 14.54% 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 AAVAS Financiers (NSE:AAVAS) Overvalued in 2026?
Based on GuruFocus' analysis, AAVAS Financiers stock appears to be undervalued.
The current stock price of ₹1,525.90 is trading 28.9% below its estimated GF Value™ of ₹2,146.77.
GuruFocus considers AAVAS Financiers to be Modestly Undervalued.
Key valuation signals for NSE:AAVAS:
Return-on-Tangible-Equity: 14.54% (near median its 10-year median of 13.84)
GF Value™: ₹2,146.77 vs. price of ₹1,525.90 (28.9% below fair value)
Industry Position: 29.9% above the Banks median (#468 of 1526)
No single metric tells the full story. See the NSE:AAVAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAVAS Financiers Ltd is a housing finance company. The company provides housing loans to customers belonging to the low and middle-income and self-employed segments in suburban and rural India. Its only operating segment is Lending to borrowers. The company's product portfolio includes home loans, land purchases and construction, home improvement loans, home equity, micro, small, and medium enterprise loan, and others. It offers customers loans for the purchase or construction of residential properties and the extension and repair of existing housing units.
84GF Score
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