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. Valens Semiconductor's annualized net income for the quarter that ended in Mar. 2026 was $-33.16 Mil. Valens Semiconductor's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $97.12 Mil. Therefore, Valens Semiconductor's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -34.14%.
The historical rank and industry rank for Valens Semiconductor's Return-on-Tangible-Equity or its related term are showing as below:
VLN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -53.08 Med: -24.35 Max: -11.85
Current: -29.78
During the past 7 years, Valens Semiconductor's highest Return-on-Tangible-Equity was -11.85%. The lowest was -53.08%. And the median was -24.35%.
VLN's Return-on-Tangible-Equity is ranked worse than 89.95% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs VLN: -29.78
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.
Valens Semiconductor Return-on-Tangible-Equity Related Terms
Valens Semiconductor Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Valens Semiconductor'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.
VLN vs GCTS, MX, GSIT: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, Valens Semiconductor'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.
Valens Semiconductor Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Valens Semiconductor's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Valens Semiconductor'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 -34.14% mean?
Valens Semiconductor (VLN) has a Return-on-Tangible-Equity of -34.14% 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 Valens Semiconductor and its competitors. According to the industry distribution chart, Valens Semiconductor ranks #886 out of 985 companies in the Semiconductors industry, placing it in the top 89.9%.
Is Valens Semiconductor's Return-on-Tangible-Equity too high?
Valens Semiconductor's current Return-on-Tangible-Equity is -34.14%. Based on the distribution chart, Valens Semiconductor ranks #886 out of 985 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Valens Semiconductor has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Valens Semiconductor's Return-on-Tangible-Equity compare to GCTS and MX?
According to the Semiconductors industry distribution chart, Valens Semiconductor ranks #886 out of 985 companies for Return-on-Tangible-Equity. This places Valens Semiconductor in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.19. 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 Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 985 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. 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 Valens Semiconductor and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valens Semiconductor's current Return-on-Tangible-Equity is -34.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valens Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Valens Semiconductor (VLN) is currently considered Fairly Valued. The stock's GF Value™ is $2.08, compared to a current price of $2.09 — trading 0.5% above its estimated fair value. The current Return-on-Tangible-Equity is -34.14%. Valens Semiconductor's overall GF Score™ is 72/100 with 6 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 Valens Semiconductor (VLN), the current Return-on-Tangible-Equity is -34.14% 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 Valens Semiconductor (VLN) Overvalued in 2026?
Based on GuruFocus' analysis, Valens Semiconductor stock appears to be overvalued.
The current stock price of $2.09 is trading 0.5% above its estimated GF Value™ of $2.08.
GuruFocus considers Valens Semiconductor to be Fairly Valued.
Key valuation signals for VLN:
Return-on-Tangible-Equity: -34.14%
GF Value™: $2.08 vs. price of $2.09 (0.5% above fair value)
No single metric tells the full story. See the VLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Cross Industry Business, which includes solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical revenue is derived from Hungary.
72GF Score
Get the complete analysis for VLN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
VLN has been successfully added to your 
