AlconXSWX:ALCE +3.65%53 Return-on-Tangible-Equity is 5.75% as of Mar. 2026, which is 32% below its 10-year median of 8.45. GuruFocus rates XSWX:ALCE with a GF Score™ of 53/100 and a GF Value™ of CHF73.46 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 760 Medical Devices & Instruments companies, Alcon ranks better than 69.21% 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. Alcon's annualized net income for the quarter that ended in Mar. 2026 was CHF595 Mil. Alcon's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF10,345 Mil. Therefore, Alcon's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.75%.
The historical rank and industry rank for Alcon's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:ALCE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -105.7 Med: 8.45 Max: 51.51
Current: 11.01
During the past 10 years, Alcon's highest Return-on-Tangible-Equity was 51.51%. The lowest was -105.70%. And the median was 8.45%.
XSWX:ALCE's Return-on-Tangible-Equity is ranked better than 69.21% of 760
companies
in the Medical Devices & Instruments industry
Industry Median: 4.115
vs XSWX:ALCE: 11.01
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.
Alcon Return-on-Tangible-Equity Related Terms
Alcon Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alcon'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:ALCE vs ISRG, BDX, MDLN: Return-on-Tangible-Equity Comparison
For the Medical Instruments & Supplies subindustry, Alcon'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.
Alcon Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Alcon's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alcon'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 5.75% mean?
Alcon (XSWX:ALCE) has a Return-on-Tangible-Equity of 5.75% 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 Alcon and its competitors. This is 32% below median its historical median of 8.45. According to the industry distribution chart, Alcon ranks #234 out of 760 companies in the Medical Devices & Instruments industry, placing it in the top 30.8%.
Is Alcon's Return-on-Tangible-Equity too high?
Alcon's current Return-on-Tangible-Equity of 5.75% is 32% below median its 10-year median of 8.45. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.12. Alcon's value of 5.75% is 39.7% above this industry median. Based on the distribution chart, Alcon ranks #234 out of 760 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Alcon has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alcon's Return-on-Tangible-Equity compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Alcon ranks #234 out of 760 companies for Return-on-Tangible-Equity. This puts Alcon in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.12. Alcon's value of 5.75% is 39.7% above this benchmark. While the company's 10-year median is 8.45 vs. the industry median of 4.12, Alcon 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 4.12, based on 760 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. Alcon's current Return-on-Tangible-Equity of 5.75% is 39.7% 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 Alcon and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alcon's current Return-on-Tangible-Equity is 5.75%, which is 32% below median its own 10-year median of 8.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alcon stock overvalued right now?
Based on GuruFocus' analysis, Alcon (XSWX:ALCE) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF73.46, compared to a current price of CHF55.60 — trading 24.3% below its estimated fair value. The current Return-on-Tangible-Equity is 5.75%, which is 32% below median its 10-year median of 8.45 and 39.7% above the Medical Devices & Instruments industry median of 4.12. Alcon's overall GF Score™ is 53/100 with 3 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 Alcon (XSWX:ALCE), the current Return-on-Tangible-Equity is 5.75% 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 Alcon (XSWX:ALCE) Overvalued in 2026?
Based on GuruFocus' analysis, Alcon stock appears to be undervalued.
The current stock price of CHF55.60 is trading 24.3% below its estimated GF Value™ of CHF73.46.
GuruFocus considers Alcon to be Modestly Undervalued.
Key valuation signals for XSWX:ALCE:
Return-on-Tangible-Equity: 5.75% (32% below median its 10-year median of 8.45)
GF Value™: CHF73.46 vs. price of CHF55.60 (24.3% below fair value)
Industry Position: 39.7% above the Medical Devices & Instruments median (#234 of 760)
No single metric tells the full story. See the XSWX:ALCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alcon is one of the leading visioncare companies in the world. Following nine years as a Novartis subsidiary, it was spun off as a public company in April 2019. Alcon operates in two segments: visioncare and surgical. Visioncare comprises contact lenses, lenscare solutions, and a suite of ocular health products. With brands like Dailies, Total1, and Air Optix, Alcon controls about one fourth of the US contact lens market. Surgical comprises intraocular lenses, ophthalmic surgical equipment, and consumables used during surgeries. Its main products include Centurion, a phacoemulsification device used during cataract surgeries, and a portfolio of IOLs including PanOptix and Vivity. Alcon has one of the largest installed bases of eye surgical equipment in the world.
53GF Score
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