Telephone and Data SystemsTDS -2.43%64 Return-on-Tangible-Equity is 18.71% as of Mar. 2026, which is 128% above its 10-year median of 8.22. GuruFocus rates TDS with a GF Score™ of 64/100 and a GF Value™ of $32.46 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 327 Telecommunication Services companies, Telephone and Data Systems ranks worse than 65.44% 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. Telephone and Data Systems's annualized net income for the quarter that ended in Mar. 2026 was $578 Mil. Telephone and Data Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,092 Mil. Therefore, Telephone and Data Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.71%.
The historical rank and industry rank for Telephone and Data Systems's Return-on-Tangible-Equity or its related term are showing as below:
TDS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -139.86 Med: 8.22 Max: 16.18
Current: 6.94
During the past 13 years, Telephone and Data Systems's highest Return-on-Tangible-Equity was 16.18%. The lowest was -139.86%. And the median was 8.22%.
TDS's Return-on-Tangible-Equity is ranked worse than 65.44% of 327
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs TDS: 6.94
Telephone and Data Systems (NYSE:TDS) 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.
Telephone and Data Systems Return-on-Tangible-Equity Related Terms
Telephone and Data Systems Return-on-Tangible-Equity Historical Data
* 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.
Telephone and Data Systems Return-on-Tangible-Equity Chart
TDS vs LBRDA, IRDM, LBTYA: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Telephone and Data Systems'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.
Telephone and Data Systems Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems'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 18.71% mean?
Telephone and Data Systems (TDS) has a Return-on-Tangible-Equity of 18.71% 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 Telephone and Data Systems and its competitors. This is 128% above median its historical median of 8.22. According to the industry distribution chart, Telephone and Data Systems ranks #214 out of 327 companies in the Telecommunication Services industry, placing it in the top 65.4%.
Is Telephone and Data Systems' Return-on-Tangible-Equity too high?
Telephone and Data Systems' current Return-on-Tangible-Equity of 18.71% is 128% above median its 10-year median of 8.22. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.99. Telephone and Data Systems' value of 18.71% is 33.7% above this industry median. Based on the distribution chart, Telephone and Data Systems ranks #214 out of 327 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telephone and Data Systems has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Return-on-Tangible-Equity compare to LBRDA and IRDM?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #214 out of 327 companies for Return-on-Tangible-Equity. This places Telephone and Data Systems in the lower half of its industry. The industry median Return-on-Tangible-Equity is 13.99. Telephone and Data Systems' value of 18.71% is 33.7% above this benchmark. While the company's 10-year median is 8.22 vs. the industry median of 13.99, Telephone and Data Systems 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 13.99, based on 327 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. Telephone and Data Systems's current Return-on-Tangible-Equity of 18.71% is 33.7% 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 Telephone and Data Systems and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current Return-on-Tangible-Equity is 18.71%, which is 128% above median its own 10-year median of 8.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telephone and Data Systems stock overvalued right now?
Based on GuruFocus' analysis, Telephone and Data Systems (TDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.46, compared to a current price of $36.19 — trading 11.5% above its estimated fair value. The current Return-on-Tangible-Equity is 18.71%, which is 128% above median its 10-year median of 8.22 and 33.7% above the Telecommunication Services industry median of 13.99. Telephone and Data Systems' overall GF Score™ is 64/100 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 Telephone and Data Systems (TDS), the current Return-on-Tangible-Equity is 18.71% 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 Telephone and Data Systems (TDS) Overvalued in 2026?
Based on GuruFocus' analysis, Telephone and Data Systems stock appears to be overvalued.
The current stock price of $36.19 is trading 11.5% above its estimated GF Value™ of $32.46.
GuruFocus considers Telephone and Data Systems to be Modestly Overvalued.
Key valuation signals for TDS:
Return-on-Tangible-Equity: 18.71% (128% above median its 10-year median of 8.22)
GF Value™: $32.46 vs. price of $36.19 (11.5% above fair value)
Industry Position: 33.7% above the Telecommunication Services median (#214 of 327)
No single metric tells the full story. See the TDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telephone and Data Systems Inc is a diversified telecommunications operator that provides communications services to customers through broadband, video, voice, and wireless connections. The company has two reportable segments: TDS Telecom and Array. The majority of its revenue is generated from the TDS Telecom segment, which generates revenue by providing broadband, video, voice, and wireless services. The Array segment generates its revenue mainly by leasing tower space on Array-owned towers to customers.
64GF Score
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