Toyota MotorTOYOF +4.30%80 Return-on-Tangible-Equity is 8.51% as of Mar. 2026, which is 20% below its 10-year median of 10.70. GuruFocus rates TOYOF with a GF Score™ of 80/100 and a GF Value™ of $21.03 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Toyota Motor ranks better than 61.32% 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. Toyota Motor's annualized net income for the quarter that ended in Mar. 2026 was $20,600 Mil. Toyota Motor's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $242,024 Mil. Therefore, Toyota Motor's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.51%.
The historical rank and industry rank for Toyota Motor's Return-on-Tangible-Equity or its related term are showing as below:
TOYOF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.4 Med: 10.7 Max: 16.5
Current: 10.6
During the past 13 years, Toyota Motor's highest Return-on-Tangible-Equity was 16.50%. The lowest was 9.40%. And the median was 10.70%.
TOYOF's Return-on-Tangible-Equity is ranked better than 61.32% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs TOYOF: 10.60
Toyota Motor (OTCPK:TOYOF) 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.
Toyota Motor Return-on-Tangible-Equity Related Terms
Toyota Motor Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Toyota Motor'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.
TOYOF vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Toyota Motor'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.
Toyota Motor Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Toyota Motor'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 8.51% mean?
Toyota Motor (TOYOF) has a Return-on-Tangible-Equity of 8.51% 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 Toyota Motor and its competitors. This is 20% below median its historical median of 10.70. Over the past decade, Toyota Motor's Return-on-Tangible-Equity has ranged from 9.40 to 16.50. According to the industry distribution chart, Toyota Motor ranks #497 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 38.7%.
Is Toyota Motor's Return-on-Tangible-Equity too high?
Toyota Motor's current Return-on-Tangible-Equity of 8.51% is 20% below median its 10-year median of 10.70. Over the past 10 years, this metric has ranged from a low of 9.40 to a high of 16.50. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Toyota Motor's value of 8.51% is 13.6% above this industry median. Based on the distribution chart, Toyota Motor ranks #497 out of 1285 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Toyota Motor has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Toyota Motor's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Toyota Motor ranks #497 out of 1285 companies for Return-on-Tangible-Equity. This puts Toyota Motor in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.49. Toyota Motor's value of 8.51% is 13.6% above this benchmark. Historically, Toyota Motor's own Return-on-Tangible-Equity has ranged from 9.40 to 16.50 over the past decade. While the company's 10-year median is 10.70 vs. the industry median of 7.49, Toyota Motor 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 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. Toyota Motor's current Return-on-Tangible-Equity of 8.51% is 13.6% 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 Toyota Motor and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toyota Motor's current Return-on-Tangible-Equity is 8.51%, which is 20% below median its own 10-year median of 10.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toyota Motor stock overvalued right now?
Based on GuruFocus' analysis, Toyota Motor (TOYOF) is currently considered Modestly Undervalued. The stock's GF Value™ is $21.03, compared to a current price of $17.31 — trading 17.7% below its estimated fair value. The current Return-on-Tangible-Equity is 8.51%, which is 20% below median its 10-year median of 10.70 and 13.6% above the Vehicles & Parts industry median of 7.49. Toyota Motor's overall GF Score™ is 80/100 with 3 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 Toyota Motor (TOYOF), the current Return-on-Tangible-Equity is 8.51% 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 Toyota Motor (TOYOF) Overvalued in 2026?
Based on GuruFocus' analysis, Toyota Motor stock appears to be undervalued.
The current stock price of $17.31 is trading 17.7% below its estimated GF Value™ of $21.03.
GuruFocus considers Toyota Motor to be Modestly Undervalued.
Key valuation signals for TOYOF:
Return-on-Tangible-Equity: 8.51% (20% below median its 10-year median of 10.70)
GF Value™: $21.03 vs. price of $17.31 (17.7% below fair value)
Industry Position: 13.6% above the Vehicles & Parts median (#497 of 1285)
No single metric tells the full story. See the TOYOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1937, Toyota is one of the world's largest automakers, with 11.3 million units sold at retail in fiscal 2026, including 10.5 million across the Toyota and Lexus brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 50% excluding mini-vehicles, while US share is around 14%. The firm also owns stakes in Denso, a parts supplier, about 20% of Subaru, and holds investments in many other firms, including shares of Uber Technologies, Joby Aviation, Aurora Innovation, Isuzu Motors, and about 5% in each of Mazda and Suzuki. Fiscal 2026 sales excluding financial services were JPY 46.1 trillion. Toyota also has a financing arm and manufactures homes and boats.
80GF Score
Get the complete analysis for TOYOF
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TOYOF has been successfully added to your 
