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Formosa International HotelsTPE:2707 -0.56%91 Return-on-Tangible-Equity is 46.03% as of Dec. 2025, which is 31% above its 10-year median of 35.23. GuruFocus rates TPE:2707 with a GF Score™ of 91/100 and a GF Value™ of NT$217.72 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 793 Travel & Leisure companies, Formosa International Hotels ranks better than 81.97% 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. Formosa International Hotels's annualized net income for the quarter that ended in Dec. 2025 was NT$1,781 Mil. Formosa International Hotels's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$3,869 Mil. Therefore, Formosa International Hotels's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 46.03%.
The historical rank and industry rank for Formosa International Hotels's Return-on-Tangible-Equity or its related term are showing as below:
TPE:2707'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 19.74 Med: 35.23 Max: 54.99
Current: 38.78
During the past 13 years, Formosa International Hotels's highest Return-on-Tangible-Equity was 54.99%. The lowest was 19.74%. And the median was 35.23%.
TPE:2707's Return-on-Tangible-Equity is ranked better than 81.97% of 793
companies
in the Travel & Leisure industry
Industry Median: 7.69
vs TPE:2707: 38.78
Formosa International Hotels (TPE:2707) 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.
Formosa International Hotels Return-on-Tangible-Equity Related Terms
Formosa International Hotels Return-on-Tangible-Equity Historical Data
* 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.
Formosa International Hotels Return-on-Tangible-Equity Chart
TPE:2707 vs MAR, HLT, H: Return-on-Tangible-Equity Comparison
For the Lodging subindustry, Formosa International Hotels'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.
Formosa International Hotels Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Formosa International Hotels's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Formosa International Hotels'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 46.03% mean?
Formosa International Hotels (TPE:2707) has a Return-on-Tangible-Equity of 46.03% 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 Formosa International Hotels and its competitors. This is 31% above median its historical median of 35.23. Over the past decade, Formosa International Hotels' Return-on-Tangible-Equity has ranged from 19.74 to 54.99. According to the industry distribution chart, Formosa International Hotels ranks #143 out of 793 companies in the Travel & Leisure industry, placing it in the top 18%.
Is Formosa International Hotels' Return-on-Tangible-Equity too high?
Formosa International Hotels' current Return-on-Tangible-Equity of 46.03% is 31% above median its 10-year median of 35.23. Over the past 10 years, this metric has ranged from a low of 19.74 to a high of 54.99. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.69. Formosa International Hotels' value of 46.03% is 498.6% above this industry median. Based on the distribution chart, Formosa International Hotels ranks #143 out of 793 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Formosa International Hotels has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formosa International Hotels' Return-on-Tangible-Equity compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Formosa International Hotels ranks #143 out of 793 companies for Return-on-Tangible-Equity. This places Formosa International Hotels in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.69. Formosa International Hotels' value of 46.03% is 498.6% above this benchmark. Historically, Formosa International Hotels' own Return-on-Tangible-Equity has ranged from 19.74 to 54.99 over the past decade. While the company's 10-year median is 35.23 vs. the industry median of 7.69, Formosa International Hotels 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.69, based on 793 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. Formosa International Hotels's current Return-on-Tangible-Equity of 46.03% is 498.6% 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 Formosa International Hotels and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa International Hotels's current Return-on-Tangible-Equity is 46.03%, which is 31% above median its own 10-year median of 35.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa International Hotels stock overvalued right now?
Based on GuruFocus' analysis, Formosa International Hotels (TPE:2707) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$217.72, compared to a current price of NT$178.50 — trading 18% below its estimated fair value. The current Return-on-Tangible-Equity is 46.03%, which is 31% above median its 10-year median of 35.23 and 498.6% above the Travel & Leisure industry median of 7.69. Formosa International Hotels' overall GF Score™ is 91/100 with 2 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 Formosa International Hotels (TPE:2707), the current Return-on-Tangible-Equity is 46.03% 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 Formosa International Hotels (TPE:2707) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa International Hotels stock appears to be undervalued.
The current stock price of NT$178.50 is trading 18% below its estimated GF Value™ of NT$217.72.
GuruFocus considers Formosa International Hotels to be Modestly Undervalued.
Key valuation signals for TPE:2707:
Return-on-Tangible-Equity: 46.03% (31% above median its 10-year median of 35.23)
GF Value™: NT$217.72 vs. price of NT$178.50 (18% below fair value)
Industry Position: 498.6% above the Travel & Leisure median (#143 of 793)
No single metric tells the full story. See the TPE:2707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa International Hotels Corp is engaged in the operation of international tourist hotels. The Group also operates Chinese and Western restaurants, cafes, bars, conference halls, and related facilities, and provides consulting services for hotel management as well as consultation and diagnostic analysis for various types of leisure industry facilities. Its operations are organized into four business segments: Room/Accommodation, Food and Beverage, Rental, and Operation Management. The Group's revenue is mainly derived from its hotel and restaurant operations.
91GF Score
Get the complete analysis for TPE:2707
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