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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. Nepal Investment Bank's annualized net income for the quarter that ended in Jul. 2025 was NPR9,091 Mil. Nepal Investment Bank's average shareholder tangible equity for the quarter that ended in Jul. 2025 was NPR65,864 Mil. Therefore, Nepal Investment Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Jul. 2025 was 13.80%.
The historical rank and industry rank for Nepal Investment Bank's Return-on-Tangible-Equity or its related term are showing as below:
XNEP:NIB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.38 Med: 12.01 Max: 18.13
Current: 10.82
During the past 13 years, Nepal Investment Bank's highest Return-on-Tangible-Equity was 18.13%. The lowest was 7.38%. And the median was 12.01%.
XNEP:NIB's Return-on-Tangible-Equity is not ranked
in the Banks industry.
Industry Median: 11.25
vs XNEP:NIB: 10.82
Nepal Investment Bank (XNEP:NIB) 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.
Nepal Investment Bank Return-on-Tangible-Equity Related Terms
Nepal Investment Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nepal Investment Bank'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.
Nepal Investment Bank Return-on-Tangible-Equity Chart
Nepal Investment Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, Nepal Investment Bank'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.
Nepal Investment Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Nepal Investment Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nepal Investment Bank'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 (Jul. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.80% mean?
Nepal Investment Bank (XNEP:NIB) has a Return-on-Tangible-Equity of 13.80% as of Jul. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nepal Investment Bank and its competitors. This is 15% above median its historical median of 12.01. Over the past decade, Nepal Investment Bank's Return-on-Tangible-Equity has ranged from 7.38 to 18.13.
Is Nepal Investment Bank's Return-on-Tangible-Equity too high?
Nepal Investment Bank's current Return-on-Tangible-Equity of 13.80% is 15% above median its 10-year median of 12.01. Over the past 10 years, this metric has ranged from a low of 7.38 to a high of 18.13. The Banks industry median Return-on-Tangible-Equity is 11.25. Nepal Investment Bank's value of 13.80% is 22.7% above this industry median. Overall, Nepal Investment Bank has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Nepal Investment Bank's Return-on-Tangible-Equity compare to competitors?
Nepal Investment Bank's Return-on-Tangible-Equity of 13.80% can be compared against companies in the Banks industry. The industry median Return-on-Tangible-Equity is 11.25. Nepal Investment Bank's value of 13.80% is 22.7% above this benchmark. Historically, Nepal Investment Bank's own Return-on-Tangible-Equity has ranged from 7.38 to 18.13 over the past decade. While the company's 10-year median is 12.01 vs. the industry median of 11.25, Nepal Investment Bank 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.25, based on 1,525 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. Nepal Investment Bank's current Return-on-Tangible-Equity of 13.80% is 22.7% 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 Nepal Investment Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nepal Investment Bank's current Return-on-Tangible-Equity is 13.80%, which is 15% above median its own 10-year median of 12.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nepal Investment Bank stock overvalued right now?
Nepal Investment Bank (XNEP:NIB) has a current Return-on-Tangible-Equity of 13.80%. The stock's GF Value™ is NPR320.00, compared to a current price of NPR251.00 — trading 21.6% below its estimated fair value. The current Return-on-Tangible-Equity is 13.80%, which is 15% above median its 10-year median of 12.01 and 22.7% above the Banks industry median of 11.25. Nepal Investment Bank's overall GF Score™ is 25/100 with 1 warning sign 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 Nepal Investment Bank (XNEP:NIB), the current Return-on-Tangible-Equity is 13.80% as of Jul. 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 Nepal Investment Bank (XNEP:NIB) Overvalued in 2026?
Based on GuruFocus' analysis, Nepal Investment Bank stock appears to be undervalued.
The current stock price of NPR251.00 is trading 21.6% below its estimated GF Value™ of NPR320.00.
Key valuation signals for XNEP:NIB:
Return-on-Tangible-Equity: 13.80% (15% above median its 10-year median of 12.01)
GF Value™: NPR320.00 vs. price of NPR251.00 (21.6% below fair value)
No single metric tells the full story. See the XNEP:NIB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nepal Investment Bank Ltd is in the business of retail and corporate banking products and services. The bank's business segments are engaged in banking operations, treasury functions, trade finance business, remittance business and card operations. The bank operates in Nepal.
25GF Score
Get the complete analysis for XNEP:NIB
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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