Abbott LaboratoriesXSWX:ABT -1.97%80 Return-on-Tangible-Equity is 39.51% as of Mar. 2026, which is 65% below its 10-year median of 111.60. GuruFocus rates XSWX:ABT with a GF Score™ of 80/100 and a GF Value™ of CHF106.31. Among 758 Medical Devices & Instruments companies, Abbott Laboratories ranks better than 90.77% 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. Abbott Laboratories's annualized net income for the quarter that ended in Mar. 2026 was CHF3,392 Mil. Abbott Laboratories's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF8,585 Mil. Therefore, Abbott Laboratories's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 39.51%.
The historical rank and industry rank for Abbott Laboratories's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:ABT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 19.54 Med: 111.6 Max: 424.69
Current: 37.9
During the past 13 years, Abbott Laboratories's highest Return-on-Tangible-Equity was 424.69%. The lowest was 19.54%. And the median was 111.60%.
XSWX:ABT's Return-on-Tangible-Equity is ranked better than 90.77% of 758
companies
in the Medical Devices & Instruments industry
Industry Median: 4.08
vs XSWX:ABT: 37.90
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.
Abbott Laboratories Return-on-Tangible-Equity Related Terms
Abbott Laboratories Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Abbott Laboratories'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.
XSWX:ABT vs SYK, MDT, BSX: Return-on-Tangible-Equity Comparison
For the Medical Devices subindustry, Abbott Laboratories'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.
Abbott Laboratories Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Abbott Laboratories's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Abbott Laboratories'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 39.51% mean?
Abbott Laboratories (XSWX:ABT) has a Return-on-Tangible-Equity of 39.51% 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 Abbott Laboratories and its competitors. This is 65% below median its historical median of 111.60. Over the past decade, Abbott Laboratories' Return-on-Tangible-Equity has ranged from 19.54 to 424.69. According to the industry distribution chart, Abbott Laboratories ranks #70 out of 758 companies in the Medical Devices & Instruments industry, placing it in the top 9.2%.
Is Abbott Laboratories' Return-on-Tangible-Equity too high?
Abbott Laboratories' current Return-on-Tangible-Equity of 39.51% is 65% below median its 10-year median of 111.60. Over the past 10 years, this metric has ranged from a low of 19.54 to a high of 424.69. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.08. Abbott Laboratories' value of 39.51% is 868.4% above this industry median. Based on the distribution chart, Abbott Laboratories ranks #70 out of 758 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Abbott Laboratories has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Abbott Laboratories' Return-on-Tangible-Equity compare to SYK and MDT?
According to the Medical Devices & Instruments industry distribution chart, Abbott Laboratories ranks #70 out of 758 companies for Return-on-Tangible-Equity. This places Abbott Laboratories in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.08. Abbott Laboratories' value of 39.51% is 868.4% above this benchmark. Historically, Abbott Laboratories' own Return-on-Tangible-Equity has ranged from 19.54 to 424.69 over the past decade. While the company's 10-year median is 111.60 vs. the industry median of 4.08, Abbott Laboratories 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 Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.08, based on 758 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. Abbott Laboratories's current Return-on-Tangible-Equity of 39.51% is 868.4% 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 Abbott Laboratories and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott Laboratories's current Return-on-Tangible-Equity is 39.51%, which is 65% below median its own 10-year median of 111.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott Laboratories stock overvalued right now?
Abbott Laboratories (XSWX:ABT) has a current Return-on-Tangible-Equity of 39.51%. The stock's GF Value™ is CHF106.31, compared to a current price of CHF74.50 — trading 29.9% below its estimated fair value. The current Return-on-Tangible-Equity is 39.51%, which is 65% below median its 10-year median of 111.60 and 868.4% above the Medical Devices & Instruments industry median of 4.08. Abbott Laboratories' overall GF Score™ is 80/100. 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 Abbott Laboratories (XSWX:ABT), the current Return-on-Tangible-Equity is 39.51% 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 Abbott Laboratories (XSWX:ABT) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott Laboratories stock appears to be undervalued.
The current stock price of CHF74.50 is trading 29.9% below its estimated GF Value™ of CHF106.31.
Key valuation signals for XSWX:ABT:
Return-on-Tangible-Equity: 39.51% (65% below median its 10-year median of 111.60)
GF Value™: CHF106.31 vs. price of CHF74.50 (29.9% below fair value)
Industry Position: 868.4% above the Medical Devices & Instruments median (#70 of 758)
No single metric tells the full story. See the XSWX:ABT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abbott manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, continuous glucose monitors, and immunoassays and point-of-care diagnostic equipment. Abbott derives roughly 60% of sales outside the United States.
80GF Score
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