Saab ABSAABF -2.96%79 Return-on-Tangible-Equity is 18.28% as of Mar. 2026, which is 2% below its 10-year median of 18.58. GuruFocus rates SAABF with a GF Score™ of 79/100 and a GF Value™ of $40.54 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 335 Aerospace & Defense companies, Saab AB ranks better than 73.73% 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. Saab AB's annualized net income for the quarter that ended in Mar. 2026 was $617 Mil. Saab AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,375 Mil. Therefore, Saab AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.28%.
The historical rank and industry rank for Saab AB's Return-on-Tangible-Equity or its related term are showing as below:
SAABF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.72 Med: 18.58 Max: 24.02
Current: 22.67
During the past 13 years, Saab AB's highest Return-on-Tangible-Equity was 24.02%. The lowest was 10.72%. And the median was 18.58%.
SAABF's Return-on-Tangible-Equity is ranked better than 73.73% of 335
companies
in the Aerospace & Defense industry
Industry Median: 8.1
vs SAABF: 22.67
Saab AB (OTCPK:SAABF) 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.
Saab AB Return-on-Tangible-Equity Related Terms
Saab AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Saab AB'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.
SAABF vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Saab AB'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.
Saab AB Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Saab AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Saab AB'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 18.28% mean?
Saab AB (SAABF) has a Return-on-Tangible-Equity of 18.28% 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 Saab AB and its competitors. This is near median its historical median of 18.58. Over the past decade, Saab AB's Return-on-Tangible-Equity has ranged from 10.72 to 24.02. According to the industry distribution chart, Saab AB ranks #88 out of 335 companies in the Aerospace & Defense industry, placing it in the top 26.3%.
Is Saab AB's Return-on-Tangible-Equity too high?
Saab AB's current Return-on-Tangible-Equity of 18.28% is near median its 10-year median of 18.58. Over the past 10 years, this metric has ranged from a low of 10.72 to a high of 24.02. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.10. Saab AB's value of 18.28% is 125.7% above this industry median. Based on the distribution chart, Saab AB ranks #88 out of 335 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Saab AB has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Saab AB's Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Saab AB ranks #88 out of 335 companies for Return-on-Tangible-Equity. This puts Saab AB in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.10. Saab AB's value of 18.28% is 125.7% above this benchmark. Historically, Saab AB's own Return-on-Tangible-Equity has ranged from 10.72 to 24.02 over the past decade. While the company's 10-year median is 18.58 vs. the industry median of 8.10, Saab AB 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 Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.10, based on 335 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. Saab AB's current Return-on-Tangible-Equity of 18.28% is 125.7% 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 Saab AB and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saab AB's current Return-on-Tangible-Equity is 18.28%, which is near median its own 10-year median of 18.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saab AB stock overvalued right now?
Based on GuruFocus' analysis, Saab AB (SAABF) is currently considered Significantly Overvalued. The stock's GF Value™ is $40.54, compared to a current price of $56.69 — trading 39.8% above its estimated fair value. The current Return-on-Tangible-Equity is 18.28%, which is near median its 10-year median of 18.58 and 125.7% above the Aerospace & Defense industry median of 8.10. Saab AB's overall GF Score™ is 79/100 with 1 warning sign 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 Saab AB (SAABF), the current Return-on-Tangible-Equity is 18.28% 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 Saab AB (SAABF) Overvalued in 2026?
Based on GuruFocus' analysis, Saab AB stock appears to be overvalued.
The current stock price of $56.69 is trading 39.8% above its estimated GF Value™ of $40.54.
GuruFocus considers Saab AB to be Significantly Overvalued.
Key valuation signals for SAABF:
Return-on-Tangible-Equity: 18.28% (near median its 10-year median of 18.58)
GF Value™: $40.54 vs. price of $56.69 (39.8% above fair value)
Industry Position: 125.7% above the Aerospace & Defense median (#88 of 335)
No single metric tells the full story. See the SAABF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saab supplies products and services for military, defense, and civil security. The company operates in four segments: aeronautics, dynamics, surveillance, and Kockums. Aeronautics involves the manufacturing and support of defense and commercial aerial systems. Dynamics produces combat weapons and defense training and management systems. Surveillance supplies security services, and creates traffic management technology and aviation parts. Kockums offers solutions for naval missions. Over three fourths of Saab's sales are from the defense sector. The company sells to multiple geographic regions, but over half of its sales come from Europe.
79GF Score
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