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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. RAC Electric Vehicles's annualized net income for the quarter that ended in Dec. 2025 was NT$246 Mil. RAC Electric Vehicles's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$1,123 Mil. Therefore, RAC Electric Vehicles's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 21.91%.
The historical rank and industry rank for RAC Electric Vehicles's Return-on-Tangible-Equity or its related term are showing as below:
ROCO:2237'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -138.64 Med: -33.59 Max: 14.71
Current: 14.71
During the past 13 years, RAC Electric Vehicles's highest Return-on-Tangible-Equity was 14.71%. The lowest was -138.64%. And the median was -33.59%.
ROCO:2237's Return-on-Tangible-Equity is ranked better than 73.09% of 1282
companies
in the Vehicles & Parts industry
Industry Median: 7.59
vs ROCO:2237: 14.71
RAC Electric Vehicles (ROCO:2237) 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.
RAC Electric Vehicles Return-on-Tangible-Equity Related Terms
RAC Electric Vehicles Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for RAC Electric Vehicles'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.
RAC Electric Vehicles Return-on-Tangible-Equity Chart
ROCO:2237 vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, RAC Electric Vehicles'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.
RAC Electric Vehicles Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, RAC Electric Vehicles's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where RAC Electric Vehicles'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 21.91% mean?
RAC Electric Vehicles (ROCO:2237) has a Return-on-Tangible-Equity of 21.91% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RAC Electric Vehicles and its competitors. According to the industry distribution chart, RAC Electric Vehicles ranks #345 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 26.9%.
Is RAC Electric Vehicles' Return-on-Tangible-Equity too high?
RAC Electric Vehicles' current Return-on-Tangible-Equity is 21.91%. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.59. RAC Electric Vehicles' value of 21.91% is 188.7% above this industry median. Based on the distribution chart, RAC Electric Vehicles ranks #345 out of 1282 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, RAC Electric Vehicles has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RAC Electric Vehicles' Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, RAC Electric Vehicles ranks #345 out of 1282 companies for Return-on-Tangible-Equity. This puts RAC Electric Vehicles in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.59. RAC Electric Vehicles' value of 21.91% is 188.7% above this benchmark. 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 7.59, based on 1,282 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. RAC Electric Vehicles's current Return-on-Tangible-Equity of 21.91% is 188.7% 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 RAC Electric Vehicles and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RAC Electric Vehicles's current Return-on-Tangible-Equity is 21.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RAC Electric Vehicles stock overvalued right now?
Based on GuruFocus' analysis, RAC Electric Vehicles (ROCO:2237) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$39.79, compared to a current price of NT$32.50 — trading 18.3% below its estimated fair value. The current Return-on-Tangible-Equity is 21.91% and 188.7% above the Vehicles & Parts industry median of 7.59. RAC Electric Vehicles' overall GF Score™ is 54/100 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 RAC Electric Vehicles (ROCO:2237), the current Return-on-Tangible-Equity is 21.91% as of Dec. 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.
Is RAC Electric Vehicles (ROCO:2237) Overvalued in 2026?
Based on GuruFocus' analysis, RAC Electric Vehicles stock appears to be undervalued.
The current stock price of NT$32.50 is trading 18.3% below its estimated GF Value™ of NT$39.79.
GuruFocus considers RAC Electric Vehicles to be Modestly Undervalued.
Key valuation signals for ROCO:2237:
Return-on-Tangible-Equity: 21.91%
GF Value™: NT$39.79 vs. price of NT$32.50 (18.3% below fair value)
Industry Position: 188.7% above the Vehicles & Parts median (#345 of 1282)
No single metric tells the full story. See the ROCO:2237 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RAC Electric Vehicles Inc is a Taiwan-licensed car manufacturer, to develop an all-electric low-floor city bus. The comapny's main businesses include battery manufacturing, battery wholesale, manufacturing of automotive and parts, and the retail of auto and motorcycle parts and accessories.
54GF Score
Get the complete analysis for ROCO:2237
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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