Volkswagen AGVLKAF -2.22%76 Return-on-Tangible-Equity is 5.93% as of Mar. 2026, which is 71% below its 10-year median of 20.22. GuruFocus rates VLKAF with a GF Score™ of 76/100 and a GF Value™ of $119.44 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Volkswagen AG ranks worse than 51.28% 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. Volkswagen AG's annualized net income for the quarter that ended in Mar. 2026 was $6,673 Mil. Volkswagen AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $112,525 Mil. Therefore, Volkswagen AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.93%.
The historical rank and industry rank for Volkswagen AG's Return-on-Tangible-Equity or its related term are showing as below:
VLKAF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.27 Med: 20.22 Max: 30.33
Current: 7.27
During the past 13 years, Volkswagen AG's highest Return-on-Tangible-Equity was 30.33%. The lowest was 7.27%. And the median was 20.22%.
VLKAF's Return-on-Tangible-Equity is ranked worse than 51.28% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs VLKAF: 7.27
Volkswagen AG (OTCPK:VLKAF) 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.
Volkswagen AG Return-on-Tangible-Equity Related Terms
Volkswagen AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Volkswagen AG'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.
VLKAF vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Volkswagen AG'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.
Volkswagen AG Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volkswagen AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Volkswagen AG'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 5.93% mean?
Volkswagen AG (VLKAF) has a Return-on-Tangible-Equity of 5.93% 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 Volkswagen AG and its competitors. This is 71% below median its historical median of 20.22. Over the past decade, Volkswagen AG's Return-on-Tangible-Equity has ranged from 7.27 to 30.33. According to the industry distribution chart, Volkswagen AG ranks #659 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 51.3%.
Is Volkswagen AG's Return-on-Tangible-Equity too high?
Volkswagen AG's current Return-on-Tangible-Equity of 5.93% is 71% below median its 10-year median of 20.22. Over the past 10 years, this metric has ranged from a low of 7.27 to a high of 30.33. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Volkswagen AG's value of 5.93% is 20.8% below this industry median. Based on the distribution chart, Volkswagen AG ranks #659 out of 1285 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Volkswagen AG has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Volkswagen AG's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Volkswagen AG ranks #659 out of 1285 companies for Return-on-Tangible-Equity. This places Volkswagen AG in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.49. Volkswagen AG's value of 5.93% is 20.8% below this benchmark. Historically, Volkswagen AG's own Return-on-Tangible-Equity has ranged from 7.27 to 30.33 over the past decade. While the company's 10-year median is 20.22 vs. the industry median of 7.49, Volkswagen AG 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 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. Volkswagen AG's current Return-on-Tangible-Equity of 5.93% is 20.8% 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 Volkswagen AG and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volkswagen AG's current Return-on-Tangible-Equity is 5.93%, which is 71% below median its own 10-year median of 20.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volkswagen AG stock overvalued right now?
Based on GuruFocus' analysis, Volkswagen AG (VLKAF) is currently considered Possible Value Trap. The stock's GF Value™ is $119.44, compared to a current price of $81.99 — trading 31.4% below its estimated fair value. The current Return-on-Tangible-Equity is 5.93%, which is 71% below median its 10-year median of 20.22 and 20.8% below the Vehicles & Parts industry median of 7.49. Volkswagen AG's overall GF Score™ is 76/100 with 7 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 Volkswagen AG (VLKAF), the current Return-on-Tangible-Equity is 5.93% 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 Volkswagen AG (VLKAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volkswagen AG stock appears to be undervalued.
The current stock price of $81.99 is trading 31.4% below its estimated GF Value™ of $119.44.
GuruFocus considers Volkswagen AG to be Possible Value Trap.
Key valuation signals for VLKAF:
Return-on-Tangible-Equity: 5.93% (71% below median its 10-year median of 20.22)
GF Value™: $119.44 vs. price of $81.99 (31.4% below fair value)
Industry Position: 20.8% below the Vehicles & Parts median (#659 of 1285)
No single metric tells the full story. See the VLKAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Volkswagen is the second-largest automotive original equipment manufacturer by vehicle sales globally, selling 9 million vehicles in 2025. Its four vehicle segments core (Volkswagen, SEAT, Skoda, and VW commercial), progressive (Audi, Lamborghini, and Bentley), sports luxury (Porsche), and Traton commercial vehicles (Traton, Scania, Navistar, MAN, and VW truck and bus) contribute 45%, 20%, 10%, and 13% to group revenue, respectively. It also has a vehicle software business (Cariad), batteries, power engineering production, and financial services.
76GF Score
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