Telekom Malaysia BhdXKLS:4863 -0.66%82 Return-on-Tangible-Equity is 13.42% as of Mar. 2026, which is 7% below its 10-year median of 14.40. GuruFocus rates XKLS:4863 with a GF Score™ of 82/100 and a GF Value™ of RM6.83 (Fairly Valued). The stock has 4 warning signs investors should review. Among 326 Telecommunication Services companies, Telekom Malaysia Bhd ranks better than 53.68% 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. Telekom Malaysia Bhd's annualized net income for the quarter that ended in Mar. 2026 was RM1,286 Mil. Telekom Malaysia Bhd's average shareholder tangible equity for the quarter that ended in Mar. 2026 was RM9,585 Mil. Therefore, Telekom Malaysia Bhd's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.42%.
The historical rank and industry rank for Telekom Malaysia Bhd's Return-on-Tangible-Equity or its related term are showing as below:
XKLS:4863'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.14 Med: 14.4 Max: 24.2
Current: 17.32
During the past 13 years, Telekom Malaysia Bhd's highest Return-on-Tangible-Equity was 24.20%. The lowest was 2.14%. And the median was 14.40%.
XKLS:4863's Return-on-Tangible-Equity is ranked better than 53.68% of 326
companies
in the Telecommunication Services industry
Industry Median: 14.005
vs XKLS:4863: 17.32
Telekom Malaysia Bhd (XKLS:4863) 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.
Telekom Malaysia Bhd Return-on-Tangible-Equity Related Terms
Telekom Malaysia Bhd Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Telekom Malaysia Bhd'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.
Telekom Malaysia Bhd Return-on-Tangible-Equity Chart
XKLS:4863 vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Telekom Malaysia Bhd'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.
Telekom Malaysia Bhd Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telekom Malaysia Bhd's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Telekom Malaysia Bhd'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 13.42% mean?
Telekom Malaysia Bhd (XKLS:4863) has a Return-on-Tangible-Equity of 13.42% 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 Telekom Malaysia Bhd and its competitors. This is near median its historical median of 14.40. Over the past decade, Telekom Malaysia Bhd's Return-on-Tangible-Equity has ranged from 2.14 to 24.20. According to the industry distribution chart, Telekom Malaysia Bhd ranks #151 out of 326 companies in the Telecommunication Services industry, placing it in the top 46.3%.
Is Telekom Malaysia Bhd's Return-on-Tangible-Equity too high?
Telekom Malaysia Bhd's current Return-on-Tangible-Equity of 13.42% is near median its 10-year median of 14.40. Over the past 10 years, this metric has ranged from a low of 2.14 to a high of 24.20. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.01. Telekom Malaysia Bhd's value of 13.42% is 4.2% below this industry median. Based on the distribution chart, Telekom Malaysia Bhd ranks #151 out of 326 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telekom Malaysia Bhd has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telekom Malaysia Bhd's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telekom Malaysia Bhd ranks #151 out of 326 companies for Return-on-Tangible-Equity. This puts Telekom Malaysia Bhd in the upper half of its industry. The industry median Return-on-Tangible-Equity is 14.01. Telekom Malaysia Bhd's value of 13.42% is 4.2% below this benchmark. Historically, Telekom Malaysia Bhd's own Return-on-Tangible-Equity has ranged from 2.14 to 24.20 over the past decade. While the company's 10-year median is 14.40 vs. the industry median of 14.01, Telekom Malaysia Bhd 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.01, based on 326 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. Telekom Malaysia Bhd's current Return-on-Tangible-Equity of 13.42% is 4.2% 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 Telekom Malaysia Bhd and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telekom Malaysia Bhd's current Return-on-Tangible-Equity is 13.42%, which is near median its own 10-year median of 14.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telekom Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Telekom Malaysia Bhd (XKLS:4863) is currently considered Fairly Valued. The stock's GF Value™ is RM6.83, compared to a current price of RM7.48 — trading 9.5% above its estimated fair value. The current Return-on-Tangible-Equity is 13.42%, which is near median its 10-year median of 14.40 and 4.2% below the Telecommunication Services industry median of 14.01. Telekom Malaysia Bhd's overall GF Score™ is 82/100 with 4 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 Telekom Malaysia Bhd (XKLS:4863), the current Return-on-Tangible-Equity is 13.42% 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 Telekom Malaysia Bhd (XKLS:4863) Overvalued in 2026?
Based on GuruFocus' analysis, Telekom Malaysia Bhd stock appears to be overvalued.
The current stock price of RM7.48 is trading 9.5% above its estimated GF Value™ of RM6.83.
GuruFocus considers Telekom Malaysia Bhd to be Fairly Valued.
Key valuation signals for XKLS:4863:
Return-on-Tangible-Equity: 13.42% (near median its 10-year median of 14.40)
GF Value™: RM6.83 vs. price of RM7.48 (9.5% above fair value)
Industry Position: 4.2% below the Telecommunication Services median (#151 of 326)
No single metric tells the full story. See the XKLS:4863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telekom Malaysia Bhd is a telecommunications company. It generates revenue from the Internet and multimedia services, Data services, Voice services, Non-telecommunications related services, and Other telecommunications-related services, in which it generates the majority of its revenue from Internet and multimedia services. The company owns telecommunications infrastructure. The Group has identified a single reportable segment of providing fixed-mobile convergence services, which offers integrated broadband, mobile, and data services, digital content, as well as other solutions. It generates the vast majority of its revenue in Malaysia.
82GF Score
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