Western DigitalTSX:WDC -15.69%48 Return-on-Tangible-Equity is 305.36% as of Mar. 2026, which is 1339% above its 10-year median of 21.22. GuruFocus rates TSX:WDC with a GF Score™ of 48/100 and a GF Value™ of C$5.31 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,379 Hardware companies, Western Digital ranks better than 97.73% 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. Western Digital's annualized net income for the quarter that ended in Mar. 2026 was C$17,589 Mil. Western Digital's average shareholder tangible equity for the quarter that ended in Mar. 2026 was C$5,760 Mil. Therefore, Western Digital's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 305.36%.
The historical rank and industry rank for Western Digital's Return-on-Tangible-Equity or its related term are showing as below:
TSX:WDC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -91.27 Med: 21.22 Max: 261.32
Current: 261.32
During the past 13 years, Western Digital's highest Return-on-Tangible-Equity was 261.32%. The lowest was -91.27%. And the median was 21.22%.
TSX:WDC's Return-on-Tangible-Equity is ranked better than 97.73% of 2379
companies
in the Hardware industry
Industry Median: 5.26
vs TSX:WDC: 261.32
Western Digital (TSX:WDC) 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.
Western Digital Return-on-Tangible-Equity Related Terms
Western Digital Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Western Digital'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.
TSX:WDC vs STX, ANET, DELL: Return-on-Tangible-Equity Comparison
For the Computer Hardware subindustry, Western Digital'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.
Western Digital Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Western Digital's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Western Digital'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 305.36% mean?
Western Digital (TSX:WDC) has a Return-on-Tangible-Equity of 305.36% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Western Digital and its competitors. This is 1339% above median its historical median of 21.22. According to the industry distribution chart, Western Digital ranks #54 out of 2379 companies in the Hardware industry, placing it in the top 2.3%.
Is Western Digital's Return-on-Tangible-Equity too high?
Western Digital's current Return-on-Tangible-Equity of 305.36% is 1339% above median its 10-year median of 21.22. The Hardware industry median Return-on-Tangible-Equity is 5.26. Western Digital's value of 305.36% is 5705.3% above this industry median. Based on the distribution chart, Western Digital ranks #54 out of 2379 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Western Digital has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Western Digital's Return-on-Tangible-Equity compare to STX and ANET?
According to the Hardware industry distribution chart, Western Digital ranks #54 out of 2379 companies for Return-on-Tangible-Equity. This places Western Digital in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.26. Western Digital's value of 305.36% is 5705.3% above this benchmark. While the company's 10-year median is 21.22 vs. the industry median of 5.26, Western Digital 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 5.26, based on 2,379 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. Western Digital's current Return-on-Tangible-Equity of 305.36% is 5705.3% 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 Western Digital and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Digital's current Return-on-Tangible-Equity is 305.36%, which is 1339% above median its own 10-year median of 21.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Digital stock overvalued right now?
Based on GuruFocus' analysis, Western Digital (TSX:WDC) is currently considered Significantly Overvalued. The stock's GF Value™ is C$5.31, compared to a current price of C$32.94 — trading 520.3% above its estimated fair value. The current Return-on-Tangible-Equity is 305.36%, which is 1339% above median its 10-year median of 21.22 and 5705.3% above the Hardware industry median of 5.26. Western Digital's overall GF Score™ is 48/100 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 Western Digital (TSX:WDC), the current Return-on-Tangible-Equity is 305.36% as of Mar. 2026. 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 Western Digital (TSX:WDC) Overvalued in 2026?
Based on GuruFocus' analysis, Western Digital stock appears to be overvalued.
The current stock price of C$32.94 is trading 520.3% above its estimated GF Value™ of C$5.31.
GuruFocus considers Western Digital to be Significantly Overvalued.
Key valuation signals for TSX:WDC:
Return-on-Tangible-Equity: 305.36% (1339% above median its 10-year median of 21.22)
GF Value™: C$5.31 vs. price of C$32.94 (520.3% above fair value)
Industry Position: 5705.3% above the Hardware median (#54 of 2379)
No single metric tells the full story. See the TSX:WDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Digital is a leading vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly, with Western Digital and Seagate being the two largest players. Western Digital designs and manufactures its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
48GF Score
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