First Hotel Co (TPE:2706) Return-on-Tangible-Equity: 1.93% (As of Dec. 2025) — 40% Below Median

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TPE:2706 First Hotel Co Ltd TPE:2706
85 GF Score
Price NT$12.75
GF Value NT$17.28
Valuation Modestly Undervalued
! 1 Warning Sign
View Full Analysis

What is First Hotel Co Return-on-Tangible-Equity?

First Hotel Co TPE:2706 85 Return-on-Tangible-Equity is 1.93% as of Dec. 2025, which is 40% below its 10-year median of 3.23. GuruFocus rates TPE:2706 with a GF Score™ of 85/100 and a GF Value™ of NT$17.28 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,714 Real Estate companies, First Hotel Co ranks worse than 55.31% 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. First Hotel Co's annualized net income for the quarter that ended in Dec. 2025 was NT$191.7 Mil. First Hotel Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$9,955.1 Mil. Therefore, First Hotel Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 1.93%.

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

TPE:2706' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.87   Med: 3.23   Max: 6.75
Current: 3.26

During the past 13 years, First Hotel Co's highest Return-on-Tangible-Equity was 6.75%. The lowest was 0.87%. And the median was 3.23%.

TPE:2706's Return-on-Tangible-Equity is ranked worse than
55.31% of 1714 companies
in the Real Estate industry
Industry Median: 4.27 vs TPE:2706: 3.26

First Hotel Co  (TPE:2706) 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.


First Hotel Co Return-on-Tangible-Equity Related Terms


First Hotel Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for First Hotel Co'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.

First Hotel Co Return-on-Tangible-Equity Chart

First Hotel Co 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 0.87 3.24 3.08 2.77 3.21

First Hotel Co 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 0.39 2.42 4.06 4.78 1.93

TPE:2706 vs CBRE, BEKE, JLL: Return-on-Tangible-Equity Comparison

For the Real Estate Services subindustry, First Hotel Co'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.


First Hotel Co Return-on-Tangible-Equity vs Real Estate Industry

For the Real Estate industry and Real Estate sector, First Hotel Co's Return-on-Tangible-Equity distribution charts can be found below:

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


TPE:2706
85GF Score
First Hotel Co Ltd TPE:2706
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

First Hotel Co Return-on-Tangible-Equity Calculation

First Hotel Co'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 )
=325.564/( (10180.959+10123.259 )/ 2 )
=325.564/10152.109
=3.21 %

First Hotel Co'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 )
=191.708/( (9786.965+10123.259)/ 2 )
=191.708/9955.112
=1.93 %

* 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 1.93% mean?
First Hotel Co (TPE:2706) has a Return-on-Tangible-Equity of 1.93% 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 First Hotel Co and its competitors. This is 40% below median its historical median of 3.23. Over the past decade, First Hotel Co's Return-on-Tangible-Equity has ranged from 0.87 to 6.75. According to the industry distribution chart, First Hotel Co ranks #948 out of 1714 companies in the Real Estate industry, placing it in the top 55.3%.
Is First Hotel Co's Return-on-Tangible-Equity too high?
First Hotel Co's current Return-on-Tangible-Equity of 1.93% is 40% below median its 10-year median of 3.23. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 6.75. The Real Estate industry median Return-on-Tangible-Equity is 4.27. First Hotel Co's value of 1.93% is 54.8% below this industry median. Based on the distribution chart, First Hotel Co ranks #948 out of 1714 companies in the Real Estate industry, which is below the industry midpoint. Overall, First Hotel Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does First Hotel Co's Return-on-Tangible-Equity compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, First Hotel Co ranks #948 out of 1714 companies for Return-on-Tangible-Equity. This places First Hotel Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.27. First Hotel Co's value of 1.93% is 54.8% below this benchmark. Historically, First Hotel Co's own Return-on-Tangible-Equity has ranged from 0.87 to 6.75 over the past decade. While the company's 10-year median is 3.23 vs. the industry median of 4.27, First Hotel Co has consistently been below 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. First Hotel Co's current Return-on-Tangible-Equity of 1.93% is 54.8% below 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 First Hotel Co 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. First Hotel Co's current Return-on-Tangible-Equity is 1.93%, which is 40% below median its own 10-year median of 3.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Hotel Co stock overvalued right now?
Based on GuruFocus' analysis, First Hotel Co (TPE:2706) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$17.28, compared to a current price of NT$12.75 — trading 26.2% below its estimated fair value. The current Return-on-Tangible-Equity is 1.93%, which is 40% below median its 10-year median of 3.23 and 54.8% below the Real Estate industry median of 4.27. First Hotel Co's overall GF Score™ is 85/100 with 1 warning sign 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 First Hotel Co (TPE:2706), the current Return-on-Tangible-Equity is 1.93% 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 First Hotel Co (TPE:2706) Overvalued in 2026?

Based on GuruFocus' analysis, First Hotel Co stock appears to be undervalued. The current stock price of NT$12.75 is trading 26.2% below its estimated GF Value™ of NT$17.28. GuruFocus considers First Hotel Co to be Modestly Undervalued.

Key valuation signals for TPE:2706:

  • Return-on-Tangible-Equity: 1.93% (40% below median its 10-year median of 3.23)
  • GF Value™: NT$17.28 vs. price of NT$12.75 (26.2% below fair value)
  • GF Score™: 85/100 with 1 warning sign
  • Industry Position: 54.8% below the Real Estate median (#948 of 1714)

No single metric tells the full story. See the TPE:2706 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


First Hotel Co Business Description

Address Nanjing East Road, No. 63, Section 2, Taipei, TWN
First Hotel Co Ltd is a Taiwan-based company, that engages in the operation and management of hotels. The reportable segments of the company are the Travel service segment which include tourist hotel service, and the Leasing segment which generates key revenue and includes Rent out commercial buildings. The company operates tourism hotels, which provide spaces for accommodation, catering, parties, fitness centers, and meeting rooms. Its leasing of commercial buildings business mainly includes the leasing of shopping malls. It also provides services like dining halls, restaurants, and online booking services.
85GF Score

Get the complete analysis for TPE:2706

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

NT$12.75
Price
NT$17.28
GF Value