NTTNTTYY +2.62%80 Return-on-Tangible-Equity is 9.38% as of Mar. 2026, which is 44% below its 10-year median of 16.82. GuruFocus rates NTTYY with a GF Score™ of 80/100 and a GF Value™ of $26.49 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 327 Telecommunication Services companies, NTT ranks better than 56.27% 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. NTT's annualized net income for the quarter that ended in Mar. 2026 was $2,797 Mil. NTT's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $29,811 Mil. Therefore, NTT's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.38%.
The historical rank and industry rank for NTT's Return-on-Tangible-Equity or its related term are showing as below:
NTTYY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.78 Med: 16.82 Max: 23.96
Current: 20.33
During the past 13 years, NTT's highest Return-on-Tangible-Equity was 23.96%. The lowest was 12.78%. And the median was 16.82%.
NTTYY's Return-on-Tangible-Equity is ranked better than 56.27% of 327
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs NTTYY: 20.33
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.
NTT Return-on-Tangible-Equity Related Terms
NTT Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NTT'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.
NTTYY vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, NTT'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.
NTT Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTT's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NTT'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 9.38% mean?
NTT (NTTYY) has a Return-on-Tangible-Equity of 9.38% 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 NTT and its competitors. This is 44% below median its historical median of 16.82. Over the past decade, NTT's Return-on-Tangible-Equity has ranged from 12.78 to 23.96. According to the industry distribution chart, NTT ranks #143 out of 327 companies in the Telecommunication Services industry, placing it in the top 43.7%.
Is NTT's Return-on-Tangible-Equity too high?
NTT's current Return-on-Tangible-Equity of 9.38% is 44% below median its 10-year median of 16.82. Over the past 10 years, this metric has ranged from a low of 12.78 to a high of 23.96. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.99. NTT's value of 9.38% is 33% below this industry median. Based on the distribution chart, NTT ranks #143 out of 327 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, NTT has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NTT's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, NTT ranks #143 out of 327 companies for Return-on-Tangible-Equity. This puts NTT in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.99. NTT's value of 9.38% is 33% below this benchmark. Historically, NTT's own Return-on-Tangible-Equity has ranged from 12.78 to 23.96 over the past decade. While the company's 10-year median is 16.82 vs. the industry median of 13.99, NTT has consistently been below 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 13.99, based on 327 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. NTT's current Return-on-Tangible-Equity of 9.38% is 33% below 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 NTT and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT's current Return-on-Tangible-Equity is 9.38%, which is 44% below median its own 10-year median of 16.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT stock overvalued right now?
Based on GuruFocus' analysis, NTT (NTTYY) is currently considered Modestly Undervalued. The stock's GF Value™ is $26.49, compared to a current price of $22.70 — trading 14.3% below its estimated fair value. The current Return-on-Tangible-Equity is 9.38%, which is 44% below median its 10-year median of 16.82 and 33% below the Telecommunication Services industry median of 13.99. NTT's overall GF Score™ is 80/100 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 NTT (NTTYY), the current Return-on-Tangible-Equity is 9.38% 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 NTT (NTTYY) Overvalued in 2026?
Based on GuruFocus' analysis, NTT stock appears to be undervalued.
The current stock price of $22.70 is trading 14.3% below its estimated GF Value™ of $26.49.
GuruFocus considers NTT to be Modestly Undervalued.
Key valuation signals for NTTYY:
Return-on-Tangible-Equity: 9.38% (44% below median its 10-year median of 16.82)
GF Value™: $26.49 vs. price of $22.70 (14.3% below fair value)
Industry Position: 33% below the Telecommunication Services median (#143 of 327)
No single metric tells the full story. See the NTTYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NTT owns NTT DoCoMo, the largest wireless operator in Japan, with 53 million mobile handset subscribers. It also owns NTT East and NTT West, the two regional incumbent fixed-line operators in Japan, with about 23.6 million broadband lines (around 72% of which are wholesaled). The firm also provides IT and communications systems integration via NTT Communications and NTT Data.
80GF Score
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