Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Varun BeveragesNSE:VBL -0.69%98 Return-on-Tangible-Equity is 19.36% as of Mar. 2026, which is 9% below its 10-year median of 21.23. GuruFocus rates NSE:VBL with a GF Score™ of 98/100 and a GF Value™ of ₹579.56 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 110 Beverages - Non-Alcoholic companies, Varun Beverages ranks better than 65.45% 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. Varun Beverages's annualized net income for the quarter that ended in Mar. 2026 was ₹34,894 Mil. Varun Beverages's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹180,217 Mil. Therefore, Varun Beverages's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.36%.
The historical rank and industry rank for Varun Beverages's Return-on-Tangible-Equity or its related term are showing as below:
NSE:VBL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.24 Med: 21.23 Max: 37.75
Current: 19.05
During the past 11 years, Varun Beverages's highest Return-on-Tangible-Equity was 37.75%. The lowest was 11.24%. And the median was 21.23%.
NSE:VBL's Return-on-Tangible-Equity is ranked better than 65.45% of 110
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 13.775
vs NSE:VBL: 19.05
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.
Varun Beverages Return-on-Tangible-Equity Related Terms
Varun Beverages Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Varun Beverages'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:VBL vs KO, PEP, MNST: Return-on-Tangible-Equity Comparison
For the Beverages - Non-Alcoholic subindustry, Varun Beverages'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.
Varun Beverages Return-on-Tangible-Equity vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Varun Beverages's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Varun Beverages'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 19.36% mean?
Varun Beverages (NSE:VBL) has a Return-on-Tangible-Equity of 19.36% 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 Varun Beverages and its competitors. This is near median its historical median of 21.23. Over the past decade, Varun Beverages' Return-on-Tangible-Equity has ranged from 11.24 to 37.75. According to the industry distribution chart, Varun Beverages ranks #38 out of 110 companies in the Beverages - Non-Alcoholic industry, placing it in the top 34.5%.
Is Varun Beverages' Return-on-Tangible-Equity too high?
Varun Beverages' current Return-on-Tangible-Equity of 19.36% is near median its 10-year median of 21.23. Over the past 10 years, this metric has ranged from a low of 11.24 to a high of 37.75. The Beverages - Non-Alcoholic industry median Return-on-Tangible-Equity is 13.78. Varun Beverages' value of 19.36% is 40.5% above this industry median. Based on the distribution chart, Varun Beverages ranks #38 out of 110 companies in the Beverages - Non-Alcoholic industry, which is above the industry midpoint. Overall, Varun Beverages has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varun Beverages' Return-on-Tangible-Equity compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Varun Beverages ranks #38 out of 110 companies for Return-on-Tangible-Equity. This puts Varun Beverages in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.78. Varun Beverages' value of 19.36% is 40.5% above this benchmark. Historically, Varun Beverages' own Return-on-Tangible-Equity has ranged from 11.24 to 37.75 over the past decade. While the company's 10-year median is 21.23 vs. the industry median of 13.78, Varun Beverages 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 Beverages - Non-Alcoholic company?
The median Return-on-Tangible-Equity among Beverages - Non-Alcoholic companies is 13.78, based on 110 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. Varun Beverages's current Return-on-Tangible-Equity of 19.36% is 40.5% 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 Varun Beverages and its competitors. For the Beverages - Non-Alcoholic industry, the median Return-on-Tangible-Equity is 13.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current Return-on-Tangible-Equity is 19.36%, which is near median its own 10-year median of 21.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varun Beverages stock overvalued right now?
Based on GuruFocus' analysis, Varun Beverages (NSE:VBL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹579.56, compared to a current price of ₹463.35 — trading 20.1% below its estimated fair value. The current Return-on-Tangible-Equity is 19.36%, which is near median its 10-year median of 21.23 and 40.5% above the Beverages - Non-Alcoholic industry median of 13.78. Varun Beverages' overall GF Score™ is 98/100 with 2 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 Varun Beverages (NSE:VBL), the current Return-on-Tangible-Equity is 19.36% 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 Varun Beverages (NSE:VBL) Overvalued in 2026?
Based on GuruFocus' analysis, Varun Beverages stock appears to be undervalued.
The current stock price of ₹463.35 is trading 20.1% below its estimated GF Value™ of ₹579.56.
GuruFocus considers Varun Beverages to be Modestly Undervalued.
Key valuation signals for NSE:VBL:
Return-on-Tangible-Equity: 19.36% (near median its 10-year median of 21.23)
GF Value™: ₹579.56 vs. price of ₹463.35 (20.1% below fair value)
Industry Position: 40.5% above the Beverages - Non-Alcoholic median (#38 of 110)
No single metric tells the full story. See the NSE:VBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varun Beverages Ltd is engaged in manufacturing, selling, bottling, and distribution of beverages of the Pepsi brand in geographically pre-defined territories of India, Sri Lanka, Nepal, Zambia, Morocco, and Zimbabwe. Its brands include Seven-Up, Mountain Dew, Mirinda, Nimbooz, Tropicana Slice, and other related products. The firm generates a majority of its revenue within India.
98GF Score
Get the complete analysis for NSE:VBL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:VBL has been successfully added to your 
