TIMTIMB +1.78%89 Return-on-Tangible-Equity is 35.01% as of Mar. 2026, which is 42% above its 10-year median of 24.69. GuruFocus rates TIMB with a GF Score™ of 89/100 and a GF Value™ of $19.41 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 327 Telecommunication Services companies, TIM ranks better than 70.95% 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. TIM's annualized net income for the quarter that ended in Mar. 2026 was $625 Mil. TIM's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,785 Mil. Therefore, TIM's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 35.01%.
The historical rank and industry rank for TIM's Return-on-Tangible-Equity or its related term are showing as below:
TIMB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.39 Med: 24.69 Max: 43.42
Current: 43.42
During the past 13 years, TIM's highest Return-on-Tangible-Equity was 43.42%. The lowest was 11.39%. And the median was 24.69%.
TIMB's Return-on-Tangible-Equity is ranked better than 70.95% of 327
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs TIMB: 43.42
TIM (NYSE:TIMB) 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.
TIM Return-on-Tangible-Equity Related Terms
TIM Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for TIM'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.
TIMB vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, TIM'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.
TIM Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, TIM's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where TIM'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 35.01% mean?
TIM (TIMB) has a Return-on-Tangible-Equity of 35.01% 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 TIM and its competitors. This is 42% above median its historical median of 24.69. Over the past decade, TIM's Return-on-Tangible-Equity has ranged from 11.39 to 43.42. According to the industry distribution chart, TIM ranks #95 out of 327 companies in the Telecommunication Services industry, placing it in the top 29.1%.
Is TIM's Return-on-Tangible-Equity too high?
TIM's current Return-on-Tangible-Equity of 35.01% is 42% above median its 10-year median of 24.69. Over the past 10 years, this metric has ranged from a low of 11.39 to a high of 43.42. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.99. TIM's value of 35.01% is 150.3% above this industry median. Based on the distribution chart, TIM ranks #95 out of 327 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, TIM has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TIM's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, TIM ranks #95 out of 327 companies for Return-on-Tangible-Equity. This puts TIM in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.99. TIM's value of 35.01% is 150.3% above this benchmark. Historically, TIM's own Return-on-Tangible-Equity has ranged from 11.39 to 43.42 over the past decade. While the company's 10-year median is 24.69 vs. the industry median of 13.99, TIM 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. TIM's current Return-on-Tangible-Equity of 35.01% is 150.3% 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 TIM 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. TIM's current Return-on-Tangible-Equity is 35.01%, which is 42% above median its own 10-year median of 24.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TIM stock overvalued right now?
Based on GuruFocus' analysis, TIM (TIMB) is currently considered Modestly Overvalued. The stock's GF Value™ is $19.41, compared to a current price of $21.71 — trading 11.8% above its estimated fair value. The current Return-on-Tangible-Equity is 35.01%, which is 42% above median its 10-year median of 24.69 and 150.3% above the Telecommunication Services industry median of 13.99. TIM's overall GF Score™ is 89/100 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 TIM (TIMB), the current Return-on-Tangible-Equity is 35.01% 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 TIM (TIMB) Overvalued in 2026?
Based on GuruFocus' analysis, TIM stock appears to be overvalued.
The current stock price of $21.71 is trading 11.8% above its estimated GF Value™ of $19.41.
GuruFocus considers TIM to be Modestly Overvalued.
Key valuation signals for TIMB:
Return-on-Tangible-Equity: 35.01% (42% above median its 10-year median of 24.69)
GF Value™: $19.41 vs. price of $21.71 (11.8% above fair value)
Industry Position: 150.3% above the Telecommunication Services median (#95 of 327)
No single metric tells the full story. See the TIMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TIM, which is 67%-owned by Telecom Italia, is the third-largest wireless carrier in Brazil, with 62 million subscribers, equal to about 23% of the market. The firm owns 49% of I-Systems, an infrastructure partnership that is expanding its network footprint across Brazil. I-Systems can provide broadband service to about 8 million locations, including 6.5 million with fiber, equal to 10%-15% of the country. TIM leases capacity on the venture's network to serve retail broadband customers under the UltraFibra brand, but it has agreed to buy out its joint venture partner in 2026 and will take full ownership of these assets. TIM also resells fiber network access from other providers.
89GF Score
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