Ambassador Hotel (TPE:2704) Return-on-Tangible-Equity: -2.25% (As of Dec. 2025)

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Director of Data and Quant Analytics at GuruFocus
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TPE:2704 Ambassador Hotel Ltd TPE:2704
76 GF Score
Price NT$45.30
GF Value NT$48.76
Valuation Fairly Valued
! 5 Warning Signs
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What is Ambassador Hotel Return-on-Tangible-Equity?

Ambassador Hotel TPE:2704 -0.55% 76 Return-on-Tangible-Equity is -2.25% as of Dec. 2025. GuruFocus rates TPE:2704 with a GF Score™ of 76/100 and a GF Value™ of NT$48.76 (Fairly Valued). The stock has 5 warning signs investors should review. Among 794 Travel & Leisure companies, Ambassador Hotel ranks worse than 69.9% 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. Ambassador Hotel's annualized net income for the quarter that ended in Dec. 2025 was NT$-589 Mil. Ambassador Hotel's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$26,123 Mil. Therefore, Ambassador Hotel's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -2.25%.

The historical rank and industry rank for Ambassador Hotel's Return-on-Tangible-Equity or its related term are showing as below:

TPE:2704' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.77   Med: 3.93   Max: 8.58
Current: 0.81

During the past 13 years, Ambassador Hotel's highest Return-on-Tangible-Equity was 8.58%. The lowest was -0.77%. And the median was 3.93%.

TPE:2704's Return-on-Tangible-Equity is ranked worse than
69.9% of 794 companies
in the Travel & Leisure industry
Industry Median: 7.7 vs TPE:2704: 0.81

Ambassador Hotel  (TPE:2704) 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.


Ambassador Hotel Return-on-Tangible-Equity Related Terms


Ambassador Hotel Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Ambassador Hotel'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.

Ambassador Hotel Return-on-Tangible-Equity Chart

Ambassador Hotel Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.77 8.58 2.97 4.26 0.79

Ambassador Hotel Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.00 -6.09 3.80 7.76 -2.25

TPE:2704 vs MAR, HLT, H: Return-on-Tangible-Equity Comparison

For the Lodging subindustry, Ambassador Hotel'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.


Ambassador Hotel Return-on-Tangible-Equity vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Ambassador Hotel's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Ambassador Hotel's Return-on-Tangible-Equity falls into.


TPE:2704
76GF Score
Ambassador Hotel Ltd TPE:2704
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ambassador Hotel Return-on-Tangible-Equity Calculation

Ambassador Hotel's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=210.04/( (27860.398+25600.975 )/ 2 )
=210.04/26730.6865
=0.79 %

Ambassador Hotel's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=-588.56/( (26644.267+25600.975)/ 2 )
=-588.56/26122.621
=-2.25 %

* 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 -2.25% mean?
Ambassador Hotel (TPE:2704) has a Return-on-Tangible-Equity of -2.25% 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 Ambassador Hotel and its competitors. According to the industry distribution chart, Ambassador Hotel ranks #555 out of 794 companies in the Travel & Leisure industry, placing it in the top 69.9%.
Is Ambassador Hotel's Return-on-Tangible-Equity too high?
Ambassador Hotel's current Return-on-Tangible-Equity is -2.25%. Based on the distribution chart, Ambassador Hotel ranks #555 out of 794 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Ambassador Hotel has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ambassador Hotel's Return-on-Tangible-Equity compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Ambassador Hotel ranks #555 out of 794 companies for Return-on-Tangible-Equity. This places Ambassador Hotel in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.70. 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.70, based on 794 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. 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 Ambassador Hotel and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambassador Hotel's current Return-on-Tangible-Equity is -2.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambassador Hotel stock overvalued right now?
Based on GuruFocus' analysis, Ambassador Hotel (TPE:2704) is currently considered Fairly Valued. The stock's GF Value™ is NT$48.76, compared to a current price of NT$45.30 — trading 7.1% below its estimated fair value. The current Return-on-Tangible-Equity is -2.25%. Ambassador Hotel's overall GF Score™ is 76/100 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 Ambassador Hotel (TPE:2704), the current Return-on-Tangible-Equity is -2.25% 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 Ambassador Hotel (TPE:2704) Overvalued in 2026?

Based on GuruFocus' analysis, Ambassador Hotel stock appears to be undervalued. The current stock price of NT$45.30 is trading 7.1% below its estimated GF Value™ of NT$48.76. GuruFocus considers Ambassador Hotel to be Fairly Valued.

Key valuation signals for TPE:2704:

  • Return-on-Tangible-Equity: -2.25%
  • GF Value™: NT$48.76 vs. price of NT$45.30 (7.1% below fair value)
  • GF Score™: 76/100 with 5 warning signs

No single metric tells the full story. See the TPE:2704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ambassador Hotel Business Description

Address Zhongshan North Road, No. 9, Lane 65, Section 2, Zhongshan District, Taipei, TWN, 104204
Ambassador Hotel Ltd is engaged in the operation of international tourist hotels and attached restaurants, cafe, lounge bars and clubs. The company provides accommodation and foodservice related products. The company has three segment: Kaohsiung segment, Hsinchu segment, and Taipei segment. The company generates key revenue from Hsinchu segment. Hsinchu segment is responsible for the foodservice and accommodation in Hsinchu area.
76GF Score

Get the complete analysis for TPE:2704

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$45.30
Price
NT$48.76
GF Value