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Forge Auto InternationalNSE:FORGEAUTO -4.96%16 Return-on-Tangible-Equity is 24.25% as of Mar. 2025, which is 15% below its 10-year median of 28.58. GuruFocus rates NSE:FORGEAUTO with a GF Score™ of 16/100. The stock has 3 warning signs investors should review. Among 1,283 Vehicles & Parts companies, Forge Auto International ranks better than 87.3% 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. Forge Auto International's annualized net income for the quarter that ended in Mar. 2025 was ₹95 Mil. Forge Auto International's average shareholder tangible equity for the quarter that ended in Mar. 2025 was ₹393 Mil. Therefore, Forge Auto International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 24.25%.
The historical rank and industry rank for Forge Auto International's Return-on-Tangible-Equity or its related term are showing as below:
NSE:FORGEAUTO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 19.39 Med: 28.58 Max: 34.93
Current: 24.25
During the past 4 years, Forge Auto International's highest Return-on-Tangible-Equity was 34.93%. The lowest was 19.39%. And the median was 28.58%.
NSE:FORGEAUTO's Return-on-Tangible-Equity is ranked better than 87.3% of 1283
companies
in the Vehicles & Parts industry
Industry Median: 7.58
vs NSE:FORGEAUTO: 24.25
Forge Auto International (NSE:FORGEAUTO) Return-on-Tangible-Equity Explanation
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.
Forge Auto International Return-on-Tangible-Equity Related Terms
Forge Auto International Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Forge Auto International'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.
Forge Auto International Return-on-Tangible-Equity Chart
Forge Auto International Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Return-on-Tangible-Equity
19.39
32.90
34.93
24.25
Forge Auto International Semi-Annual Data
Mar22
Mar23
Mar24
Mar25
Return-on-Tangible-Equity
19.39
32.90
34.93
24.25
NSE:FORGEAUTO vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Forge Auto International'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.
Forge Auto International Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Forge Auto International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Forge Auto International'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 one times the annual (Mar. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 24.25% mean?
Forge Auto International (NSE:FORGEAUTO) has a Return-on-Tangible-Equity of 24.25% as of Mar. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Forge Auto International and its competitors. This is 15% below median its historical median of 28.58. Over the past decade, Forge Auto International's Return-on-Tangible-Equity has ranged from 19.39 to 34.93. According to the industry distribution chart, Forge Auto International ranks #163 out of 1283 companies in the Vehicles & Parts industry, placing it in the top 12.7%.
Is Forge Auto International's Return-on-Tangible-Equity too high?
Forge Auto International's current Return-on-Tangible-Equity of 24.25% is 15% below median its 10-year median of 28.58. Over the past 10 years, this metric has ranged from a low of 19.39 to a high of 34.93. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.58. Forge Auto International's value of 24.25% is 219.9% above this industry median. Based on the distribution chart, Forge Auto International ranks #163 out of 1283 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Forge Auto International has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Forge Auto International's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Forge Auto International ranks #163 out of 1283 companies for Return-on-Tangible-Equity. This places Forge Auto International in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.58. Forge Auto International's value of 24.25% is 219.9% above this benchmark. Historically, Forge Auto International's own Return-on-Tangible-Equity has ranged from 19.39 to 34.93 over the past decade. While the company's 10-year median is 28.58 vs. the industry median of 7.58, Forge Auto International 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.58, based on 1,283 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. Forge Auto International's current Return-on-Tangible-Equity of 24.25% is 219.9% 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 Forge Auto International and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forge Auto International's current Return-on-Tangible-Equity is 24.25%, which is 15% below median its own 10-year median of 28.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forge Auto International stock overvalued right now?
Forge Auto International (NSE:FORGEAUTO) has a current Return-on-Tangible-Equity of 24.25%. The current Return-on-Tangible-Equity is 24.25%, which is 15% below median its 10-year median of 28.58 and 219.9% above the Vehicles & Parts industry median of 7.58. Forge Auto International's overall GF Score™ is 16/100 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 Forge Auto International (NSE:FORGEAUTO), the current Return-on-Tangible-Equity is 24.25% as of Mar. 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.
Forge Auto International Ltd is an engineering company engaged in forging and manufacturing of complex and safety-critical, forged and precision machined components such as big rings, small rings, big ball studs, gear blank with a broach, stub axle assembly, flange yoke 325 HS, catering to different industry sectors like auto industry including automobiles, tractors, railways etc. and non-auto sectors like agriculture parts, hydraulic parts, striking tools etc. It serves its customers comprising of domestic and global original equipment manufacturers (OEMs) engaged in manufacturing for both the automotive sector and other nonautomotive sector, used across industries by a diversified base of customers.
16GF Score
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