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Highwealth ConstructionTPE:2542 -0.12%77 Return-on-Tangible-Equity is 18.85% as of Dec. 2025, which is 107% above its 10-year median of 9.09. GuruFocus rates TPE:2542 with a GF Score™ of 77/100 and a GF Value™ of NT$37.21 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 1,714 Real Estate companies, Highwealth Construction ranks better than 67.91% 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. Highwealth Construction's annualized net income for the quarter that ended in Dec. 2025 was NT$9,708 Mil. Highwealth Construction's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$51,491 Mil. Therefore, Highwealth Construction's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 18.85%.
The historical rank and industry rank for Highwealth Construction's Return-on-Tangible-Equity or its related term are showing as below:
TPE:2542'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.35 Med: 9.09 Max: 22.49
Current: 8.65
During the past 13 years, Highwealth Construction's highest Return-on-Tangible-Equity was 22.49%. The lowest was 5.35%. And the median was 9.09%.
TPE:2542's Return-on-Tangible-Equity is ranked better than 67.91% of 1714
companies
in the Real Estate industry
Industry Median: 4.27
vs TPE:2542: 8.65
Highwealth Construction (TPE:2542) 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.
Highwealth Construction Return-on-Tangible-Equity Related Terms
Highwealth Construction Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Highwealth Construction'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.
Highwealth Construction Return-on-Tangible-Equity Chart
Highwealth Construction Return-on-Tangible-Equity Competitor Comparison
For the Real Estate - Development subindustry, Highwealth Construction'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.
Highwealth Construction Return-on-Tangible-Equity vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Highwealth Construction's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Highwealth Construction'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 18.85% mean?
Highwealth Construction (TPE:2542) has a Return-on-Tangible-Equity of 18.85% 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 Highwealth Construction and its competitors. This is 107% above median its historical median of 9.09. Over the past decade, Highwealth Construction's Return-on-Tangible-Equity has ranged from 5.35 to 22.49. According to the industry distribution chart, Highwealth Construction ranks #550 out of 1714 companies in the Real Estate industry, placing it in the top 32.1%.
Is Highwealth Construction's Return-on-Tangible-Equity too high?
Highwealth Construction's current Return-on-Tangible-Equity of 18.85% is 107% above median its 10-year median of 9.09. Over the past 10 years, this metric has ranged from a low of 5.35 to a high of 22.49. The Real Estate industry median Return-on-Tangible-Equity is 4.27. Highwealth Construction's value of 18.85% is 341.5% above this industry median. Based on the distribution chart, Highwealth Construction ranks #550 out of 1714 companies in the Real Estate industry, which is above the industry midpoint. Overall, Highwealth Construction has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Highwealth Construction's Return-on-Tangible-Equity compare to competitors?
According to the Real Estate industry distribution chart, Highwealth Construction ranks #550 out of 1714 companies for Return-on-Tangible-Equity. This puts Highwealth Construction in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.27. Highwealth Construction's value of 18.85% is 341.5% above this benchmark. Historically, Highwealth Construction's own Return-on-Tangible-Equity has ranged from 5.35 to 22.49 over the past decade. While the company's 10-year median is 9.09 vs. the industry median of 4.27, Highwealth Construction 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 Real Estate company?
The median Return-on-Tangible-Equity among Real Estate companies is 4.27, based on 1,714 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. Highwealth Construction's current Return-on-Tangible-Equity of 18.85% is 341.5% 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 Highwealth Construction and its competitors. For the Real Estate industry, the median Return-on-Tangible-Equity is 4.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Highwealth Construction's current Return-on-Tangible-Equity is 18.85%, which is 107% above median its own 10-year median of 9.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highwealth Construction stock overvalued right now?
Based on GuruFocus' analysis, Highwealth Construction (TPE:2542) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$37.21, compared to a current price of NT$43.30 — trading 16.4% above its estimated fair value. The current Return-on-Tangible-Equity is 18.85%, which is 107% above median its 10-year median of 9.09 and 341.5% above the Real Estate industry median of 4.27. Highwealth Construction's overall GF Score™ is 77/100 with 12 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 Highwealth Construction (TPE:2542), the current Return-on-Tangible-Equity is 18.85% 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 Highwealth Construction (TPE:2542) Overvalued in 2026?
Based on GuruFocus' analysis, Highwealth Construction stock appears to be overvalued.
The current stock price of NT$43.30 is trading 16.4% above its estimated GF Value™ of NT$37.21.
GuruFocus considers Highwealth Construction to be Modestly Overvalued.
Key valuation signals for TPE:2542:
Return-on-Tangible-Equity: 18.85% (107% above median its 10-year median of 9.09)
GF Value™: NT$37.21 vs. price of NT$43.30 (16.4% above fair value)
Industry Position: 341.5% above the Real Estate median (#550 of 1714)
No single metric tells the full story. See the TPE:2542 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highwealth Construction Corp is engaged in the business of construction sales, and leasing of residential and commercial buildings. Geographically the activities are carried out in Taiwan. The firm has three segments: Developing; Constructing, Hotel and other divisions. The developing segment that derives the majority of revenue is responsible for developing new construction or rental opportunities. Constructing segment is responsible for constructing buildings. Department stores and hotel segment operates hotels, catering services, and other business operations. The Groups revenues are all generated from domestic business.
77GF Score
Get the complete analysis for TPE:2542
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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