Bayer AG (XSWX:BAYN) Return-on-Tangible-Equity: Negative Tangible Equity% (As of Mar. 2026)


XSWX:BAYN Bayer AG XSWX:BAYN
48 GF Score
Price CHF42.49
GF Value CHF24.74
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Bayer AG Return-on-Tangible-Equity?

Bayer AG XSWX:BAYN 48 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates XSWX:BAYN with a GF Score™ of 48/100 and a GF Value™ of CHF24.74 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 896 Drug Manufacturers companies, Bayer AG ranks worse than 111607.03% 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. Bayer AG's annualized net income for the quarter that ended in Mar. 2026 was CHF10,059 Mil. Bayer AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF-19,713 Mil. Therefore, Bayer AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.

The historical rank and industry rank for Bayer AG's Return-on-Tangible-Equity or its related term are showing as below:

During the past 13 years, Bayer AG's highest Return-on-Tangible-Equity was 135.48%. The lowest was 0.00%. And the median was 135.48%.

XSWX:BAYN's Return-on-Tangible-Equity is not ranked *
in the Drug Manufacturers industry.
Industry Median: 7.795
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Bayer AG  (XSWX:BAYN) 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.


Bayer AG Return-on-Tangible-Equity Related Terms


Bayer AG Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Bayer AG'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.

Bayer AG Return-on-Tangible-Equity Chart

Bayer AG Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity 0.00 0.00 0.00

Bayer AG Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Tangible Equity 0.00 0.00 0.00 Negative Tangible Equity

XSWX:BAYN vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison

For the Drug Manufacturers - General subindustry, Bayer AG'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.


Bayer AG Return-on-Tangible-Equity vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Bayer AG's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Bayer AG's Return-on-Tangible-Equity falls into.


XSWX:BAYN
48GF Score
Bayer AG XSWX:BAYN
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Bayer AG Return-on-Tangible-Equity Calculation

Bayer AG's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=-3377.96/( (-18877.646+-21215.83 )/ 2 )
=-3377.96/-20046.738
=N/A %

Bayer AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=10059.236/( (-21215.83+-18209.839)/ 2 )
=10059.236/-19712.8345
=Negative Tangible Equity %

* 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 Negative Tangible Equity% mean?
Bayer AG (XSWX:BAYN) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Bayer AG and its competitors. According to the industry distribution chart, Bayer AG ranks #999999 out of 896 companies in the Drug Manufacturers industry.
Is Bayer AG's Return-on-Tangible-Equity too high?
Bayer AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Bayer AG ranks #999999 out of 896 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Bayer AG has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bayer AG's Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Bayer AG ranks #999999 out of 896 companies for Return-on-Tangible-Equity. This places Bayer AG in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.80. 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 Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.80, based on 896 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 Bayer AG and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bayer AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bayer AG stock overvalued right now?
Based on GuruFocus' analysis, Bayer AG (XSWX:BAYN) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF24.74, compared to a current price of CHF42.49 — trading 71.7% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Bayer AG's overall GF Score™ is 48/100 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 Bayer AG (XSWX:BAYN), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Bayer AG (XSWX:BAYN) Overvalued in 2026?

Based on GuruFocus' analysis, Bayer AG stock appears to be overvalued. The current stock price of CHF42.49 is trading 71.7% above its estimated GF Value™ of CHF24.74. GuruFocus considers Bayer AG to be Significantly Overvalued.

Key valuation signals for XSWX:BAYN:

  • Return-on-Tangible-Equity: Negative Tangible Equity%
  • GF Value™: CHF24.74 vs. price of CHF42.49 (71.7% above fair value)
  • GF Score™: 48/100 with 6 warning signs

No single metric tells the full story. See the XSWX:BAYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Bayer AG Business Description

Address Kaiser-Wilhelm-Allee 1, Leverkusen, NW, DEU, 51368
Bayer is a German healthcare and agriculture conglomerate. Healthcare provides close to half of the company's sales and includes pharmaceutical drugs (about 38% of total sales in 2025) as well as vitamins and other consumer healthcare products (13% of total). The firm's crop science business (47% of total) sells seeds, pesticides, herbicides, and fungicides, which was expanded through its 2018 acquisition of Monsanto.
48GF Score

Get the complete analysis for XSWX:BAYN

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF42.49
Price
CHF24.74
GF Value