Vestas Wind Systems ASOCSE:VWS -0.58%85 Return-on-Tangible-Equity is 70.71% as of Mar. 2026, which is 92% above its 10-year median of 36.82. GuruFocus rates OCSE:VWS with a GF Score™ of 85/100 and a GF Value™ of kr192.68 (Fairly Valued). The stock has 7 warning signs investors should review. Among 2,967 Industrial Products companies, Vestas Wind Systems AS ranks better than 97.4% 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. Vestas Wind Systems AS's annualized net income for the quarter that ended in Mar. 2026 was kr2,452 Mil. Vestas Wind Systems AS's average shareholder tangible equity for the quarter that ended in Mar. 2026 was kr3,467 Mil. Therefore, Vestas Wind Systems AS's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 70.71%.
The historical rank and industry rank for Vestas Wind Systems AS's Return-on-Tangible-Equity or its related term are showing as below:
OCSE:VWS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -196.47 Med: 36.82 Max: 725.91
Current: 725.91
During the past 13 years, Vestas Wind Systems AS's highest Return-on-Tangible-Equity was 725.91%. The lowest was -196.47%. And the median was 36.82%.
OCSE:VWS's Return-on-Tangible-Equity is ranked better than 97.4% of 2967
companies
in the Industrial Products industry
Industry Median: 6.72
vs OCSE:VWS: 725.91
Vestas Wind Systems AS (OCSE:VWS) 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.
Vestas Wind Systems AS Return-on-Tangible-Equity Related Terms
Vestas Wind Systems AS Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Vestas Wind Systems AS'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.
Vestas Wind Systems AS Return-on-Tangible-Equity Chart
OCSE:VWS vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Vestas Wind Systems AS'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.
Vestas Wind Systems AS Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Vestas Wind Systems AS's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Vestas Wind Systems AS'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 70.71% mean?
Vestas Wind Systems AS (OCSE:VWS) has a Return-on-Tangible-Equity of 70.71% 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 Vestas Wind Systems AS and its competitors. This is 92% above median its historical median of 36.82. According to the industry distribution chart, Vestas Wind Systems AS ranks #77 out of 2967 companies in the Industrial Products industry, placing it in the top 2.6%.
Is Vestas Wind Systems AS's Return-on-Tangible-Equity too high?
Vestas Wind Systems AS's current Return-on-Tangible-Equity of 70.71% is 92% above median its 10-year median of 36.82. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Vestas Wind Systems AS's value of 70.71% is 952.2% above this industry median. Based on the distribution chart, Vestas Wind Systems AS ranks #77 out of 2967 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Vestas Wind Systems AS has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vestas Wind Systems AS's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Vestas Wind Systems AS ranks #77 out of 2967 companies for Return-on-Tangible-Equity. This places Vestas Wind Systems AS in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Vestas Wind Systems AS's value of 70.71% is 952.2% above this benchmark. While the company's 10-year median is 36.82 vs. the industry median of 6.72, Vestas Wind Systems AS 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 Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,967 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. Vestas Wind Systems AS's current Return-on-Tangible-Equity of 70.71% is 952.2% 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 Vestas Wind Systems AS and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vestas Wind Systems AS's current Return-on-Tangible-Equity is 70.71%, which is 92% above median its own 10-year median of 36.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vestas Wind Systems AS stock overvalued right now?
Based on GuruFocus' analysis, Vestas Wind Systems AS (OCSE:VWS) is currently considered Fairly Valued. The stock's GF Value™ is kr192.68, compared to a current price of kr187.20 — trading 2.8% below its estimated fair value. The current Return-on-Tangible-Equity is 70.71%, which is 92% above median its 10-year median of 36.82 and 952.2% above the Industrial Products industry median of 6.72. Vestas Wind Systems AS's overall GF Score™ is 85/100 with 7 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 Vestas Wind Systems AS (OCSE:VWS), the current Return-on-Tangible-Equity is 70.71% 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 Vestas Wind Systems AS (OCSE:VWS) Overvalued in 2026?
Based on GuruFocus' analysis, Vestas Wind Systems AS stock appears to be undervalued.
The current stock price of kr187.20 is trading 2.8% below its estimated GF Value™ of kr192.68.
GuruFocus considers Vestas Wind Systems AS to be Fairly Valued.
Key valuation signals for OCSE:VWS:
Return-on-Tangible-Equity: 70.71% (92% above median its 10-year median of 36.82)
GF Value™: kr192.68 vs. price of kr187.20 (2.8% below fair value)
Industry Position: 952.2% above the Industrial Products median (#77 of 2967)
No single metric tells the full story. See the OCSE:VWS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vestas is a leading manufacturer of wind turbines with the highest installed capacity under service in the world. The firm operates two business segments: power solutions and services. The power solutions segment designs, manufactures, and installs onshore and offshore wind turbines. The services segment performs operating and maintenance service work on wind turbines.
85GF Score
Get the complete analysis for OCSE:VWS
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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