Telstra GroupTLGPY -0.37%76 Return-on-Tangible-Equity is 108.78% as of Dec. 2025, which is 172% above its 10-year median of 40.05. GuruFocus rates TLGPY with a GF Score™ of 76/100 and a GF Value™ of $15.99 (Fairly Valued). The stock has 7 warning signs investors should review. Among 327 Telecommunication Services companies, Telstra Group ranks better than 77.37% 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. Telstra Group's annualized net income for the quarter that ended in Dec. 2025 was $1,494 Mil. Telstra Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $1,373 Mil. Therefore, Telstra Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 108.78%.
The historical rank and industry rank for Telstra Group's Return-on-Tangible-Equity or its related term are showing as below:
TLGPY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 23.04 Med: 40.05 Max: 101.75
Current: 101.75
During the past 13 years, Telstra Group's highest Return-on-Tangible-Equity was 101.75%. The lowest was 23.04%. And the median was 40.05%.
TLGPY's Return-on-Tangible-Equity is ranked better than 77.37% of 327
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs TLGPY: 101.75
Telstra Group (OTCPK:TLGPY) 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.
Telstra Group Return-on-Tangible-Equity Related Terms
Telstra Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Telstra 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.
TLGPY vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Telstra 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.
Telstra Group Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Telstra 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 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 108.78% mean?
Telstra Group (TLGPY) has a Return-on-Tangible-Equity of 108.78% 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 Telstra Group and its competitors. This is 172% above median its historical median of 40.05. Over the past decade, Telstra Group's Return-on-Tangible-Equity has ranged from 23.04 to 101.75. According to the industry distribution chart, Telstra Group ranks #74 out of 327 companies in the Telecommunication Services industry, placing it in the top 22.6%.
Is Telstra Group's Return-on-Tangible-Equity too high?
Telstra Group's current Return-on-Tangible-Equity of 108.78% is 172% above median its 10-year median of 40.05. Over the past 10 years, this metric has ranged from a low of 23.04 to a high of 101.75. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.99. Telstra Group's value of 108.78% is 677.6% above this industry median. Based on the distribution chart, Telstra Group ranks #74 out of 327 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Telstra Group has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #74 out of 327 companies for Return-on-Tangible-Equity. This places Telstra Group in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.99. Telstra Group's value of 108.78% is 677.6% above this benchmark. Historically, Telstra Group's own Return-on-Tangible-Equity has ranged from 23.04 to 101.75 over the past decade. While the company's 10-year median is 40.05 vs. the industry median of 13.99, Telstra 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 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. Telstra Group's current Return-on-Tangible-Equity of 108.78% is 677.6% 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 Telstra Group 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. Telstra Group's current Return-on-Tangible-Equity is 108.78%, which is 172% above median its own 10-year median of 40.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telstra Group stock overvalued right now?
Based on GuruFocus' analysis, Telstra Group (TLGPY) is currently considered Fairly Valued. The stock's GF Value™ is $15.99, compared to a current price of $17.30 — trading 8.2% above its estimated fair value. The current Return-on-Tangible-Equity is 108.78%, which is 172% above median its 10-year median of 40.05 and 677.6% above the Telecommunication Services industry median of 13.99. Telstra Group's overall GF Score™ is 76/100 with 7 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 Telstra Group (TLGPY), the current Return-on-Tangible-Equity is 108.78% 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 Telstra Group (TLGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of $17.30 is trading 8.2% above its estimated GF Value™ of $15.99.
GuruFocus considers Telstra Group to be Fairly Valued.
Key valuation signals for TLGPY:
Return-on-Tangible-Equity: 108.78% (172% above median its 10-year median of 40.05)
GF Value™: $15.99 vs. price of $17.30 (8.2% above fair value)
Industry Position: 677.6% above the Telecommunication Services median (#74 of 327)
No single metric tells the full story. See the TLGPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telstra is Australia's largest telecommunications company, with dominant market shares in voice, mobile, enterprise telecom, and fixed-line broadband resale via the national broadband network. Telstra provides most of its services via its infrastructure assets, such as a fixed-line network (data centers, exchanges, poles, ducts, pits and pipes, fiber network), a mobile network, and mobile towers. Its customers span retail, corporate, government, wholesale, and overseas segments. Telstra also provides the government-owned, last-mile fixed-line National Broadband Network with long-term access to its infrastructure, in return for recurring payments. Finally, Telstra operates a leading telecom operation in Papua New Guinea and the surrounding South-Pacific countries.
76GF Score
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