Trip.com GroupTCOM -0.19%79 Return-on-Tangible-Equity is 18.27% as of Dec. 2025, which is 16% below its 10-year median of 21.74. GuruFocus rates TCOM with a GF Score™ of 79/100 and a GF Value™ of $77.38 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 794 Travel & Leisure companies, Trip.com Group ranks better than 81.36% 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. Trip.com Group's annualized net income for the quarter that ended in Dec. 2025 was $2,431 Mil. Trip.com Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $13,310 Mil. Therefore, Trip.com Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 18.27%.
The historical rank and industry rank for Trip.com Group's Return-on-Tangible-Equity or its related term are showing as below:
TCOM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -11.32 Med: 21.74 Max: 41.05
Current: 37.07
During the past 13 years, Trip.com Group's highest Return-on-Tangible-Equity was 41.05%. The lowest was -11.32%. And the median was 21.74%.
TCOM's Return-on-Tangible-Equity is ranked better than 81.36% of 794
companies
in the Travel & Leisure industry
Industry Median: 7.615
vs TCOM: 37.07
Trip.com Group (NAS:TCOM) 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.
Trip.com Group Return-on-Tangible-Equity Related Terms
Trip.com Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Trip.com Group'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.
TCOM vs EXPE, CCL, NCLH: Return-on-Tangible-Equity Comparison
For the Travel Services subindustry, Trip.com Group'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.
Trip.com Group Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Trip.com Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Trip.com Group'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 (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 18.27% mean?
Trip.com Group (TCOM) has a Return-on-Tangible-Equity of 18.27% 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 Trip.com Group and its competitors. This is 16% below median its historical median of 21.74. According to the industry distribution chart, Trip.com Group ranks #148 out of 794 companies in the Travel & Leisure industry, placing it in the top 18.6%.
Is Trip.com Group's Return-on-Tangible-Equity too high?
Trip.com Group's current Return-on-Tangible-Equity of 18.27% is 16% below median its 10-year median of 21.74. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.62. Trip.com Group's value of 18.27% is 139.9% above this industry median. Based on the distribution chart, Trip.com Group ranks #148 out of 794 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Trip.com Group has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Trip.com Group's Return-on-Tangible-Equity compare to EXPE and CCL?
According to the Travel & Leisure industry distribution chart, Trip.com Group ranks #148 out of 794 companies for Return-on-Tangible-Equity. This places Trip.com Group in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.62. Trip.com Group's value of 18.27% is 139.9% above this benchmark. While the company's 10-year median is 21.74 vs. the industry median of 7.62, Trip.com Group 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 a Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.62, based on 794 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. Trip.com Group's current Return-on-Tangible-Equity of 18.27% is 139.9% 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 Trip.com Group and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trip.com Group's current Return-on-Tangible-Equity is 18.27%, which is 16% below median its own 10-year median of 21.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trip.com Group stock overvalued right now?
Based on GuruFocus' analysis, Trip.com Group (TCOM) is currently considered Significantly Undervalued. The stock's GF Value™ is $77.38, compared to a current price of $41.00 — trading 47% below its estimated fair value. The current Return-on-Tangible-Equity is 18.27%, which is 16% below median its 10-year median of 21.74 and 139.9% above the Travel & Leisure industry median of 7.62. Trip.com Group's overall GF Score™ is 79/100 with 2 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 Trip.com Group (TCOM), the current Return-on-Tangible-Equity is 18.27% 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 Trip.com Group (TCOM) Overvalued in 2026?
Based on GuruFocus' analysis, Trip.com Group stock appears to be undervalued.
The current stock price of $41.00 is trading 47% below its estimated GF Value™ of $77.38.
GuruFocus considers Trip.com Group to be Significantly Undervalued.
Key valuation signals for TCOM:
Return-on-Tangible-Equity: 18.27% (16% below median its 10-year median of 21.74)
GF Value™: $77.38 vs. price of $41.00 (47% below fair value)
Industry Position: 139.9% above the Travel & Leisure median (#148 of 794)
No single metric tells the full story. See the TCOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 79% of sales from accommodation reservations and transportation ticketing in 2024. The rest of revenue comes from package tours and corporate travel. Before the pandemic in 2019, the company generated 25% of revenue from international travel, which is important to its margin expansion. Most of sales come from its domestic platform, but the company is expanding its overseas business. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.
79GF Score
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