Rivian AutomotiveRIVN +8.11%50 Return-on-Tangible-Equity is -37.11% as of Mar. 2026. GuruFocus rates RIVN with a GF Score™ of 50/100 and a GF Value™ of $14.62 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,284 Vehicles & Parts companies, Rivian Automotive ranks worse than 96.26% 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. Rivian Automotive's annualized net income for the quarter that ended in Mar. 2026 was $-1,664 Mil. Rivian Automotive's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $4,485 Mil. Therefore, Rivian Automotive's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -37.11%.
The historical rank and industry rank for Rivian Automotive's Return-on-Tangible-Equity or its related term are showing as below:
RIVN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -66.8 Med: -51.72 Max: -40.54
Current: -66.8
During the past 7 years, Rivian Automotive's highest Return-on-Tangible-Equity was -40.54%. The lowest was -66.80%. And the median was -51.72%.
RIVN's Return-on-Tangible-Equity is ranked worse than 96.26% of 1284
companies
in the Vehicles & Parts industry
Industry Median: 7.48
vs RIVN: -66.80
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.
Rivian Automotive Return-on-Tangible-Equity Related Terms
Rivian Automotive Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rivian Automotive'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.
RIVN vs NIO, LI, XPEV: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Rivian Automotive'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.
Rivian Automotive Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Rivian Automotive's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rivian Automotive'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 -37.11% mean?
Rivian Automotive (RIVN) has a Return-on-Tangible-Equity of -37.11% 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 Rivian Automotive and its competitors. According to the industry distribution chart, Rivian Automotive ranks #1236 out of 1284 companies in the Vehicles & Parts industry, placing it in the top 96.3%.
Is Rivian Automotive's Return-on-Tangible-Equity too high?
Rivian Automotive's current Return-on-Tangible-Equity is -37.11%. Based on the distribution chart, Rivian Automotive ranks #1236 out of 1284 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Rivian Automotive has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rivian Automotive's Return-on-Tangible-Equity compare to NIO and LI?
According to the Vehicles & Parts industry distribution chart, Rivian Automotive ranks #1236 out of 1284 companies for Return-on-Tangible-Equity. This places Rivian Automotive in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.48. 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 7.48, based on 1,284 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. 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 Rivian Automotive and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rivian Automotive's current Return-on-Tangible-Equity is -37.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rivian Automotive stock overvalued right now?
Based on GuruFocus' analysis, Rivian Automotive (RIVN) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.62, compared to a current price of $20.14 — trading 37.8% above its estimated fair value. The current Return-on-Tangible-Equity is -37.11%. Rivian Automotive's overall GF Score™ is 50/100 with 4 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 Rivian Automotive (RIVN), the current Return-on-Tangible-Equity is -37.11% 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 Rivian Automotive (RIVN) Overvalued in 2026?
Based on GuruFocus' analysis, Rivian Automotive stock appears to be overvalued.
The current stock price of $20.14 is trading 37.8% above its estimated GF Value™ of $14.62.
GuruFocus considers Rivian Automotive to be Significantly Overvalued.
Key valuation signals for RIVN:
Return-on-Tangible-Equity: -37.11%
GF Value™: $14.62 vs. price of $20.14 (37.8% above fair value)
No single metric tells the full story. See the RIVN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rivian is a battery electric vehicle automaker that sells its vehicles in the US and Canada. The company also develops electronic control units and related software for autos in a joint venture with Volkswagen. Rivian has multiple vehicles in its fleet, which include a luxury truck and full-size SUV and a delivery van. The company plans to begin selling a midsize SUV in 2026. Total deliveries were over 42,000 in 2025. Rivian is also developing autonomous driving software to be used in its vehicles and for robotaxis on the Uber ride-hailing network.
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