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PegatronTPE:4938 -0.61%70 Return-on-Tangible-Equity is 10.55% as of Dec. 2025, which is 13% above its 10-year median of 9.37. GuruFocus rates TPE:4938 with a GF Score™ of 70/100 and a GF Value™ of NT$76.57 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,387 Hardware companies, Pegatron ranks better than 57.6% 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. Pegatron's annualized net income for the quarter that ended in Dec. 2025 was NT$21,068 Mil. Pegatron's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$199,622 Mil. Therefore, Pegatron's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.55%.
The historical rank and industry rank for Pegatron's Return-on-Tangible-Equity or its related term are showing as below:
TPE:4938'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.96 Med: 9.37 Max: 13.08
Current: 7.3
During the past 13 years, Pegatron's highest Return-on-Tangible-Equity was 13.08%. The lowest was 6.96%. And the median was 9.37%.
TPE:4938's Return-on-Tangible-Equity is ranked better than 57.6% of 2387
companies
in the Hardware industry
Industry Median: 5.28
vs TPE:4938: 7.30
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.
Pegatron Return-on-Tangible-Equity Related Terms
Pegatron Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Pegatron'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.
TPE:4938 vs SNDK, DELL, STX: Return-on-Tangible-Equity Comparison
For the Computer Hardware subindustry, Pegatron'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.
Pegatron Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Pegatron's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Pegatron'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 10.55% mean?
Pegatron (TPE:4938) has a Return-on-Tangible-Equity of 10.55% 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 Pegatron and its competitors. This is 13% above median its historical median of 9.37. Over the past decade, Pegatron's Return-on-Tangible-Equity has ranged from 6.96 to 13.08. According to the industry distribution chart, Pegatron ranks #1012 out of 2387 companies in the Hardware industry, placing it in the top 42.4%.
Is Pegatron's Return-on-Tangible-Equity too high?
Pegatron's current Return-on-Tangible-Equity of 10.55% is 13% above median its 10-year median of 9.37. Over the past 10 years, this metric has ranged from a low of 6.96 to a high of 13.08. The Hardware industry median Return-on-Tangible-Equity is 5.28. Pegatron's value of 10.55% is 99.8% above this industry median. Based on the distribution chart, Pegatron ranks #1012 out of 2387 companies in the Hardware industry, which is above the industry midpoint. Overall, Pegatron has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pegatron's Return-on-Tangible-Equity compare to SNDK and DELL?
According to the Hardware industry distribution chart, Pegatron ranks #1012 out of 2387 companies for Return-on-Tangible-Equity. This puts Pegatron in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.28. Pegatron's value of 10.55% is 99.8% above this benchmark. Historically, Pegatron's own Return-on-Tangible-Equity has ranged from 6.96 to 13.08 over the past decade. While the company's 10-year median is 9.37 vs. the industry median of 5.28, Pegatron 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.28, based on 2,387 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. Pegatron's current Return-on-Tangible-Equity of 10.55% is 99.8% 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 Pegatron and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pegatron's current Return-on-Tangible-Equity is 10.55%, which is 13% above median its own 10-year median of 9.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pegatron stock overvalued right now?
Based on GuruFocus' analysis, Pegatron (TPE:4938) is currently considered Fairly Valued. The stock's GF Value™ is NT$76.57, compared to a current price of NT$82.10 — trading 7.2% above its estimated fair value. The current Return-on-Tangible-Equity is 10.55%, which is 13% above median its 10-year median of 9.37 and 99.8% above the Hardware industry median of 5.28. Pegatron's overall GF Score™ is 70/100 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 Pegatron (TPE:4938), the current Return-on-Tangible-Equity is 10.55% 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 Pegatron (TPE:4938) Overvalued in 2026?
Based on GuruFocus' analysis, Pegatron stock appears to be overvalued.
The current stock price of NT$82.10 is trading 7.2% above its estimated GF Value™ of NT$76.57.
GuruFocus considers Pegatron to be Fairly Valued.
Key valuation signals for TPE:4938:
Return-on-Tangible-Equity: 10.55% (13% above median its 10-year median of 9.37)
GF Value™: NT$76.57 vs. price of NT$82.10 (7.2% above fair value)
Industry Position: 99.8% above the Hardware median (#1012 of 2387)
No single metric tells the full story. See the TPE:4938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pegatron Corp is engaged in the design, manufacture, and sale of OEM products. The Group operates through two segments: DMS (Design, Manufacturing and Service) and the Strategic Investment Group. The DMS segment focuses on designing and manufacturing computer, communication, and consumer electronics end products, as well as providing after-sales services, and generates the majority of the Group's revenue. The Strategic Investment Group is involved in upstream and downstream supply chain activities, strategic investments, and other related investment operations. Geographically, the Group generates the majority of its revenue from Taiwan.
70GF Score
Get the complete analysis for TPE:4938
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